Rules of Thumb That Managers Use to Simplify Decision Making

question 16

Multiple Choice

Rules of thumb that managers use to simplify decision making are known as ________.

• A) heuristics
• B) folksonomies
• C) algorithms
• D) sophisms

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Definitions:

Planning Budget

A financial plan that estimates income, expenses, and resources over a period, often used for guiding management decisions.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Fixed Cost

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost scenarios.