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A Major Fallacy of ________ Budgeting Is That Sales Cause

question 194

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A major fallacy of ________ budgeting is that sales cause promotion. Using this method, a company may reduce the amount it spends on promotion if sales declined the previous period when it may actually need to spend more.


Definitions:

Absolutist Thinking

A cognitive distortion where an individual sees situations in only black and white, without recognizing any middle ground.

Aaron Beck

A psychiatrist known for developing cognitive therapy, particularly for his work on cognitive behavioral therapy for depression.

Magnification

Cognitive distortion involving exaggerating the importance or significance of events.

Conditioning

The process of learning associations between environmental stimuli and behavioral responses.

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