Which of the Following Illustrates the Operation of "Groupthink

question 47

Multiple Choice

Which of the following illustrates the operation of "groupthink"?

• A) A group leader makes a decision without consulting anyone, and the decision turns out to be a bad one.
• B) A group gathers lots of information and makes a good policy recommendation.
• C) A group seeks opinion differences and is unable to come up with any policy recommendation at all.
• D) A group seeks consensus and discourages members from speaking freely, resulting in the group making a poor decision.

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Definitions:

Labor Costs

The total amount of compensation, including wages, salaries, and benefits, paid to employees for their work.

Allocated Fixed Costs

Costs that remain constant for a specific period regardless of the level of production or business activity, which are distributed across different departments or products.

Variable Departmental Costs

Costs that vary directly with the volume of output or level of activity within a specific department.

Direct Fixed Costs

Costs that are directly linked to a specific department or cost center and do not vary with the level of production or sales.