Select the Correct Statement About Budgeting and Human Behavior

question 90

Multiple Choice

Select the correct statement about budgeting and human behavior.

• A) People are usually very comfortable with budgets.
• B) The attitudes of upper managers significantly impact budget effectiveness.
• C) Budgets increase individual freedom within an organization.
• D) Participative budgeting contributes to fear and resentment.

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Definitions:

Representativeness

A cognitive heuristic in which an individual categorizes a situation based on how similar it is to a typical case from that category.

Anchoring

A cognitive bias in decision-making and information-processing where an initial piece of information serves as a reference point for judgments and decisions that follow.

Memory Retrieval Routes

The processes and pathways by which stored information is recalled from the brain.

Inconsistent Information

Data or facts that do not align with each other, creating a conflict or contradiction in understanding or interpretation.