If Managers Believe That Their Abilities Can Reduce the Risks

question 14

Multiple Choice

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can,they might demonstrate ________ and trust only their own judgment rather than conduct sufficient analysis.

• A) agency problems
• B) reasoning by analogy
• C) managerial conceit
• D) escalation of commitment

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made at specific periods, such as monthly or annually, rather than continuously.