What Is Characteristic of the Measurement and Use of Indirect

question 56

Multiple Choice

What is characteristic of the measurement and use of indirect and intangible benefits in capital investment decision making?

• A) Intangible benefits cannot be measured.
• B) Actions by competitors are not considered.
• C) ABC has made identifying indirect benefits easier.
• D) Indirect and intangible benefits should not be considered; only direct costs and benefits are considered.

---

Definitions:

Irrational Escalation

The phenomenon where individuals increase their investment in a decision based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong.

Fixed Pie

A misconception in negotiations where parties incorrectly believe that their interests are directly opposed, assuming that one party's gain is the other's loss.

Reframing

The process of changing the perspective or context of a situation to view it in a new light.

Thrust, Tone

The main direction, force, or emphasis of a discourse or negotiation, along with the mood or attitude conveyed through it.