Harrison Company Determines That an Opportunity Cost of an Alternate

question 61

Multiple Choice

Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision.Which statement is true of the opportunity cost?

• A)should be added to the "buy" costs
• B)should be subtracted from the "make" costs
• C)should be added to the "make" costs
• D)should be ignored if it does not involve a cash outlay

Acknowledge the significance of clear problem definition in decision-making effectiveness.

Understand the effects of information presentation on decision-making biases.

Recognize the role and challenges of decision-making at various levels of management.

Understand the methodological approaches to solving different types of problems.

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Definitions:

Maslow's Hierarchy of Needs

A psychological theory that categorizes human needs into five levels, from basic physiological needs to self-actualization.

Motivated

Motivated describes the psychological force that drives an individual to take action towards a desired goal, influenced by factors such as personal interest, reward, or obligation.

Self-Actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Physiological Needs

are the basic physical requirements for human survival, such as air, water, food, shelter, and sleep, forming the base of Maslow's hierarchy of needs.