What Are the Three Generally Accepted Constructs of Decision Making

question 5

Multiple Choice

What are the three generally accepted constructs of decision making each of us employs to make determinations?

• A) rational decision making, bounded rationality, and intuition
• B) escalation of commitment, risk aversion, and hindsight bias
• C) utilitarianism, rights, and justice
• D) expertise, creative-thinking skills, and intrinsic task motivation
• E) distinctiveness, consensus, and consistency

---

Definitions:

Income From Operations

The profit realized from a business's core operations, excluding costs and expenses related to financing and investments.

Residual Income

The income that remains after subtracting all required costs of capital from operating profit, a measure of profitability.

Activity Base

A measure used to allocate costs in activity-based costing, reflecting the level of effort or consumption of resources.

Service Departments

Units within an organization that support other departments but do not directly contribute to revenue generation, such as IT and HR.