Psychological Bias in Decision Making Is Best Described as

question 4

Multiple Choice

Psychological bias in decision making is best described as

• A) The effect that people's psychological capabilities have upon the decisions they must make under pressure.
• B) What happens when a decision maker must balance the preferences of many interested parties, diluting effectiveness.
• C) The conflict that results from too many people involved with making a decision.
• D) The inability to be objective when gathering, evaluating, and applying information for decision making.
• E) The fact that people are motivated by a need for power that clouds their decision making capabilities.

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Definitions:

Activity-Based Costing

A methodology that assigns production costs to products based on the activities required to produce them, aiming to provide more accurate product costing.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and allocated overhead.

Activity Rate

The cost driver rate used in activity-based costing to allocate costs more accurately to products or services based on specific activities.

Activity Cost Pool

A category in activity-based costing that aggregates costs incurred from a specific activity, facilitating the assignment of those costs to products or services based on their use of the activity.