Which of the Following Statements Is True of the Concept

question 64

Multiple Choice

Which of the following statements is true of the concept of risky shift?

• A)It is the tendency to shift to a group that makes less risky decisions.
• B)It is the tendency for a group decision to be riskier than the average decision made by the individual group members.
• C)It refers to a person's loss of personal identity when he or she becomes a part of a group.
• D)It refers to each person's tendency to exert less effort in a group because of reduced accountability for individual effort.

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Definitions:

Units Transferred

Units transferred refer to the quantity of goods moved from one stage of production or department to another within a manufacturing process or for delivery.

Cost Reconciliation

The process of analyzing and adjusting the differences between the reported cost and the actual cost.

Direct Method

An approach in cost accounting used to allocate service departments' costs directly to production departments without intermediate steps.

Service Department

An organizational unit that provides support services to other parts of an organization, rather than directly contributing to revenue generation.