COST ACCOUNTING
INFORMATION FOR DECISION MAKING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Overconfidence
|
|
|
Immediate gratification
|
|
|
The anchoring effect
|
|
|
Selective perception
|
Detailed explanation-1: -Immediate gratification describes decision makers who want immediate rewards but want to avoid immediate costs. For these individuals, decision choices that provide quick payoffs are more appealing than those with payoffs in the future.
Detailed explanation-2: -Immediate gratification bias-describes decision makers who tend to want immediate rewards and to avoid immediate costs.
Detailed explanation-3: -Decision making can also be classified into three categories based on the level at which they occur. Strategic decisions set the course of organization. Tactical decisions are decisions about how things will get done. Finally, operational decisions are decisions that employees make each day to run the organization.
Detailed explanation-4: -The availability bias describes the actions of decision makers who try to create meaning out of random events.