When Managers Make a Decision Because It "Feels Right," They

question 228

True/False

When managers make a decision because it "feels right," they are using intuition,which generally results in better decisions than a rational process.

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Definitions:

Cost Behavior

Refers to how the total costs of production change when there is a change in the level of output.

Activity Analysis

The process of breaking down and examining activities within a process or system to improve efficiency and productivity.

Unit Fixed Costs

The consistent expenses incurred by a company for each unit produced that do not change with the volume of production.

Level of Activity

A measure of the volume of production or operations, often influencing costs and profitability in a business.