The Tendency for a Decision Maker to Search for Reassurance

question 13

Multiple Choice

The tendency for a decision maker to search for reassurance that a recent decision he or she made was a good decision represents which one of the following characteristics?

• A) Overconfidence
• B) Overoptimism
• C) Affect heuristic
• D) Confirmation bias
• E) Representativeness heuristic

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Definitions:

IFRS

Rephrased: The International Financial Reporting Standards, a global framework for financial reporting, utilized by companies for the preparation of financial statements.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or disposal, representing what a company can expect to receive.

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.