The Fact That People Choose the First Course of Action

question 14

Multiple Choice

The fact that people choose the first course of action with a satisfactory outcome and almost never make optimal decisions is known as:

• A)optimizing
• B)under-optimizing
• C)satisficing
• D)maximizing
• E)minimizing

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Definitions:

Income From Operations

The earnings generated from a company's regular core business operations, excluding deductions of interest and taxes.

Residual Income

A measure of net income after accounting for the cost of capital.

Activity Base

A measure used for allocating fixed costs to products or services based on the amount of activity.

Service Departments

Units within an organization that provide support to the profit-making departments, rather than directly contributing to profits.