After Choosing Among Several Computer Server Systems, the Director of Information

question 61

Multiple Choice

After choosing among several computer server systems, the Director of Information Systems feels very positive about the choice that was made.However, some of this optimism is due to the fact that the Director forgot about some of the limitations of the chosen system and unconsciously downplays the importance of the positive features of the rejected systems.The Director of Information Systems is engaging in:

• A)escalation of commitment.
• B)satisficing.
• C)rational choice thinking.
• D)post-decisional justification.
• E)None of these decision processes.

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Definitions:

Capital Cost Allowance

A tax deduction in Canada that allows businesses to write off the cost of physical assets over time.

Canadian Tax Law

The laws and regulations that define how taxes are calculated, collected, and enforced in Canada, covering income, corporate, sales taxes, and more.

Depreciation Method

An accounting technique used to allocate the cost of a tangible asset over its useful life.

Stand-Alone Principle

A method in capital budgeting where a project is evaluated based on its own profitability without considering the impact of other projects or financing methods.