____ Leads to a Manager Making Flawed Decisions Because He

question 51

Multiple Choice

____ leads to a manager making flawed decisions because he is overly sure of himself.

• A) Sunk-cost trap
• B) Downside bias
• C) Overconfidence
• D) Escalating commitment

---

Definitions:

Capitalised

Expenses or costs that are added to the cost basis of a fixed asset on a company's balance sheet, rather than being expensed immediately.

Extrusion System

A process used in manufacturing to create objects of a fixed cross-sectional profile by pushing material through a die of the desired cross-section.

Financial Year

A one-year period that companies use for accounting purposes and preparation of financial statements, which may or may not align with the calendar year.

Expensed

Costs or expenditures that are immediately charged against earnings in the period in which they are incurred, rather than being capitalized or deferred.