Which One of the Following Is an Advantage of the Average

question 37

Multiple Choice

Which one of the following is an advantage of the average accounting return method of analysis?

• A)easy availability of information needed for the computation
• B)inclusion of time value of money considerations
• C)the use of a cutoff rate as a benchmark
• D)the use of pre-tax income in the computation
• E)use of real, versus nominal, average income

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Definitions:

Hindsight Bias

is the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome.

Just-World Phenomenon

A cognitive bias that leads people to believe that the world is inherently fair, causing them to rationalize an unjust situation as deserved by the victim.

Scapegoating

The practice of singling out any party for unmerited negative treatment or blame as a way of deflecting attention from one’s own failures or inadequacies.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.