An Implication of the Bounded Rationality Models of Management Is

question 63

Multiple Choice

An implication of the bounded rationality models of management is that:

• A) all decision making processes are inherently perfect as human beings are rational beings.
• B) all decision making processes essentially involves dealing with a resource of unlimited reasoning power.
• C) the proficiency of a decision process increases exponentially with increase in information that is used for that process.
• D) the more information available to be included into the decision process,the less efficient that process will be.

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Definitions:

Standard Level

The expected or planned level of activity, output, or performance against which actual outcomes can be compared.

Selling Price

Selling price is the amount a customer pays to purchase a product or service, often strategically set by considering production costs, market demand, and competitor pricing.

Process Further

A decision-making process in cost accounting that evaluates the costs and benefits of additional processing.

Variable Expenses

Costs that change in proportion to the level of production or sales activities of a business.