Commitment Devices Can Be

question 59

Multiple Choice

Commitment devices can be:

• A) a way to use choice architecture to help you avoid temptation.
• B) formal policies or products.
• C) a way for people to voluntarily restrict their choices in order to make it easier to stick to plans.
• D) All of these statements are true.

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Definitions:

Ending Inventory

The overall financial value of items on offer at the termination of an accounting cycle.

Perpetual Inventory

An inventory management system that continuously updates the quantity and value of inventory in real-time with every sale or purchase.

GAAP

Known as Generally Accepted Accounting Principles, these are the standard rules and guidelines followed in accounting for financial reporting.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that govern how company's financial statements are prepared.