Cornwall Company Has Two Divisions, a and B

question 34

Multiple Choice

Cornwall Company has two divisions, A and B. Information for each division is as follows: What is EVA for Division A?

• A) $40,000
• B) $28,000
• C) $15,000
• D) $25,000

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Definitions:

Duplex Mind

A concept suggesting the mind has two different processing systems, one automatic and unconscious, and the other deliberate and conscious.

Automatic System

A cognitive system that operates quickly and without conscious effort, responsible for fast and intuitive reactions and judgements.

Conscious System

Refers to the parts of the mind that are aware of surroundings, thoughts, and feelings at any given moment.

Planning Fallacy

The tendency for plans to be overly optimistic because the planner fails to allow for unexpected problems.