Escalating Commitment Is a Process of Continuing or Increasing the Allocation

question 129

True/False

Escalating commitment is a process of continuing or increasing the allocation of resources to a course of action even though a substantial amount of feedback indicates that the choice made is wrong.

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Definitions:

Cost Center

A business unit that incurs costs but does not directly generate revenues, often evaluated for efficiency and cost control.

Cost Center

A division or unit within an organization that does not directly add to profit but still incurs costs, often analyzed for budgeting and cost control.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Cost Of Goods Sold

Direct expenditures involved in producing the products a company sells, inclusive of materials and labor.