When Entering into Salary Negotiations, a New Employee Requests a Figure

question 40

Multiple Choice

When entering into salary negotiations, a new employee requests a figure higher than what she really wants, and the manager offers a figure lower that what she is prepared to offer. These people are using which of the following heuristics?

• A) The representativeness heuristic.
• B) The anchoring and adjustment heuristic.
• C) The availability heuristic.
• D) The framing effect.

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Definitions:

Raw Materials Inventory

The total cost of all raw materials that are yet to be used in production.

Gallons

A unit of volume measurement used primarily in the United States to quantify liquids.

Standard Costs

Predetermined costs for manufacturing a product, used for budgeting and assessing performance.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company, including materials and labor.