An Unfavorable Variance May Be Due to Poor Planning Rather

question 14

True/False

An unfavorable variance may be due to poor planning rather than due to inefficiency.

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Definitions:

Ignoring Base Rates

A cognitive bias in which people underutilize or disregard the general prevalence of an event or characteristic within a population when making probabilistic judgments.

Successful Restaurant

A dining establishment that flourishes through effective management, quality food, excellent service, and a satisfied customer base.

Previous Owners

The individuals who owned an item or property before the current holder.

Likelihood of Outcome

The probability or chance that a specific outcome will occur out of a set of possible outcomes.