Which of the Following Might You Expect to See Being

question 70

Multiple Choice

Which of the following might you expect to see being used as a performance measure for a cost centre?

• A) Return on investment
• B) Actual business unit profit compared with budget business unit profit
• C) Standard cost variances
• D) All of the given answers

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Definitions:

Magical Thinking

The belief that one's thoughts, words, or actions can influence the outcome of events in the physical world in a manner not governed by the laws of physics or logic.

Theory Perseverance

The persistence of one's initial beliefs, even in the face of contradicting evidence or after the evidence for their foundation has been discredited.

Availability Heuristic

The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision, often leading to bias.

False Consensus Effect

The tendency to overestimate the number of other people who share one’s opinions, attitudes, values, and beliefs.