General Rules Used as the Basis for Decision Making Are

question 24

Multiple Choice

General rules used as the basis for decision making are referred to as:

• A)a loss aversion technique.
• B)heuristics.
• C)self-attribution.
• D)narrow framing.
• E)confirmation bias.

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Definitions:

Activity Level

Pertains to the volume or quantity of work performed or services provided, often related to the operational capacity of a business or project.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Committed Fixed Costs

Expenses that a company has committed to pay over a period, which do not vary with the level of production or sales.