A(n)________ Occurs When Decision Makers Incorrectly Fixate on Past Expenditures

question 15

Multiple Choice

A(n) ________ occurs when decision makers incorrectly fixate on past expenditures of time,money,or effort in assessing choices rather than focusing on future consequences.

• A)hindsight bias
• B)confirmation bias
• C)overconfidence bias
• D)sunk costs error

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Definitions:

Downstream Transfer

Transactions where a parent company sells or transfers assets to its subsidiary.

Straight-Line Method

An accounting method of depreciation where the value of a fixed asset is reduced uniformly over its useful life.

Consolidated Financial Statement

Financial statements that aggregate the financial position and operational results of a parent company and its subsidiaries.

Gross Profit

The financial result obtained after deducting the cost of goods sold from total sales revenue.