To Make Sure That Managers Interpret Variances Correctly and Make

question 192

Multiple Choice

To make sure that managers interpret variances correctly and make appropriate decisions based on them,managers need to recognise that variances can have ___________ cause(s) .

• A)ambiguous
• B)unknown
• C)multiple
• D)one

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Definitions:

Limited Knowledge

The state of having restricted information or understanding about a subject or situation, emphasizing incomplete or finite expertise.

Behavioral Economists

Behavioral economists study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economics.

Endowment Effect

The phenomenon where people ascribe more value to things merely because they own them, often leading to a discrepancy between buying and selling prices.

Raffle Prize

A reward given to the winner(s) of a raffle, which is a form of lottery or contest.