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 the decision will have 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 process of making decisions in organizations is determined by various factors: economic, social, organizational, personal and psychological. According to conducted research economic and organizational factors were considered to be the most important by the respondents.
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