Tips on How to Avoid the Escalation of Commitment Trap

question 53

Multiple Choice

Tips on how to avoid the escalation of commitment trap in decision making include all of the following EXCEPT:

• A) determining why the particular course of action is right.
• B) setting advance limits on involvement.
• C) not letting others influence your decision.
• D) guarding yourself against the tendency to quit too soon.
• E) keeping in mind the costs involved.

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Definitions:

Product Costs

Costs directly tied to the creation of a product, including raw materials, labor, and manufacturing overhead.

Manufacturing Process

A sequence of operations and processes designed to create a specific product from raw materials or components.

Balance Sheet

A list of the assets, liabilities, and stockholders’ equity as of a specific date, usually at the close of the last day of a month or a year.

Direct Labor

The expenses incurred on salaries for workers directly engaged in manufacturing goods or providing services.