If Machine Maintenance Is Scheduled at a Time When Production

question 58

Multiple Choice

If machine maintenance is scheduled at a time when production is at a low level,then:

• A)an understanding of operations is needed to determine an appropriate cost driver.
• B)low production should be avoided since it is the cause of machine maintenance.
• C)machine maintenance cannot be accurately predicted.
• D)low production is the cost driver of high repair costs.

---

Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, even though it was not predictable.

Overconfidence Bias

The tendency of individuals to overestimate their own abilities, skills, or chances of success.

Predictions Incorrect

Situations where anticipated outcomes fail to materialize as expected due to various factors such as flawed assumptions or unforeseen events.

Confirmation Bias

A tendency to search for, interpret, and remember information in a way that confirms one's preconceptions.