The Phenomenon of "Risky Shift" Means

question 12

Multiple Choice

The phenomenon of "risky shift" means:

• A)that groups do not accept higher risks than individuals.
• B)that a corporation will shift its risk onto its customers.
• C)that a group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk higher than the risk they would accept as individuals.
• D)the tendency for members of a group to internalize the group's values and perceptions and to suppress critical thought.

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Definitions:

Variable Costing

An accounting approach that includes only variable production costs - direct materials, direct labor, and variable manufacturing overhead - in product costs, excluding fixed overhead.

Net Operating Income

The profit a company earns from its normal business operations, excluding non-operating income and expenses.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, considering only the revenues and costs directly attributable to the segment.