Use the Information Below to Answer the Following Question(s)

question 177

Multiple Choice

Use the information below to answer the following question(s) .Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000.Cost of units sold is expected to be 40 percent of sales.All units are paid for in the month following purchase.The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired.Beginning accounts payable is $152,000.
-Boone Hobbies gross margin for next month is expected to be

• A)$280,000.
• B)$336,000.
• C)$356,000.
• D)$360,000.
• E)$240,000.

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Definitions:

Recency Error

A cognitive bias where recent events or experiences are weighted more heavily than older ones in the evaluation of individuals or situations.

Severity Error

A bias in judgment where someone may overestimate the severity of a situation or condition.

Halo Error

A cognitive bias in which the perception of one positively regarded trait influences the perception of other traits of an individual.

Managing by Objectives

A management strategy in which employees and managers collaborate to set, monitor, and achieve specific objectives.