Escalation of Commitment

question 52

Multiple Choice

Escalation of commitment

• A)involves committing more and more resources to a failing course of action.
• B)illustrates how decision makers often ignore sunk costs.
• C)only occurs when the decision maker is responsible for beginning a course of action.
• D)runs counter to the general tendency for decision makers to try to justify their actions.
• E)is the most common outcome of information overload.

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Definitions:

Standards

Established benchmarks or norms specifying the expected levels of quality, performance, or compliance.

Quality Costs

Represents the expenses associated with preventing, detecting, and correcting defective work in products or services.

Defect Rate

A measure of the frequency at which errors or flaws occur in a manufacturing process or a product.

Quality Performance

The degree to which a product or service meets customer expectations and industry standards.