When He Heard That Turnover Was Increasing, the Human Resource

question 228

Multiple Choice

When he heard that turnover was increasing, the human resource manager immediately told the president that salaries would have to be raised.Unfortunately, low pay wasn't the cause of the turnover.Which decision-making error did the manager commit?

• A)He treated sunk costs improperly.
• B)He defined the problem in terms of a solution.
• C)He escalated commitment.
• D)He exhibited the knew-it-all-along effect.
• E)He revealed a confirmation bias.

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Definitions:

Direct Labor Rate Variances

This term refers to the difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing and budgeting.

Efficiency Variances

The differences between actual performance in terms of time or cost and the standard expected performance.

Cost Information

Refers to data related to the amount of money required to produce goods or services, including production, maintenance, and other associated expenses.

Favorable

A term that indicates a positive variance or outcome, especially in the context of budgeting and financial analysis.