COST ACCOUNTING
COST VOLUME PROFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A key factor in almost any business decision is the impact of the decision on the organization’s profit.
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TRUE
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FALSE
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Explanation:
Detailed explanation-1: -There are several important factors that influence decision making. Significant factors include past experiences, a variety of cognitive biases, an escalation of commitment and sunk outcomes, individual differences, including age and socioeconomic status, and a belief in personal relevance.
Detailed explanation-2: -The decision-maker is usually the CEO unless the company has co-founders in the vertical you are selling into (e.g., CTO for the product, CMO for marketing) or has already hired experienced VPs. 10-50 employees: Look for VPs, as generally, they have buying power in small companies.
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