The Self-Serving Bias Is the Tendency to Overestimate Our Value

question 7

True/False

The self-serving bias is the tendency to overestimate our value by attributing successes to ourselves (internal causes) and attributing failures to others or the environment (external causes).

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Definitions:

Variable Cost

Expenses that change directly in relation to fluctuations in production levels or the volume of sales.

Fixed Cost

Expenses that do not change with the level of goods or services produced by the business over a given period.

High-Low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Cost

Outlays that move in tandem with the level of production or the scale of sales.