Which of the Following Is False About Temporal Discounting

question 25

Multiple Choice

Which of the following is false about temporal discounting?

• A)Because of it, people are only able to perceive the short-term consequences of their behavior.
• B)It causes people to avoid costly investments in the future despite later payoffs.
• C)It makes it unlikely that we will give up something today to alleviate long-term problems.
• D)It means people value short-term circumstances more than long-term ones.

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Definitions:

Warranty Expenses

Costs that a company anticipates for repairing or replacing defective products sold to customers under warranty.

Net Sales

Net sales are the total revenue from goods or services sold by a company, after deducting returns, allowances for damaged or missing goods, and discounts.

Sales Warranty Accrual Method

A method used in accounting to set aside a portion of sales revenue to cover future warranty claims, ensuring that warranty expenses are matched with related sales in the same period.

Warranty Expense

The estimated cost of honoring product warranties, recognized as an expense by companies.