COST ACCOUNTING
INFORMATION FOR DECISION MAKING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Power differentials and potential for bias
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Consultation
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Training of managers in decision-making skills
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Key personnel
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Access to relevant information
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Detailed explanation-1: -Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms or supports one’s prior beliefs or values.
Detailed explanation-2: -The power differential is the inherently greater power and influence that helping professionals have as compared to the people they help. Understanding both the value and the many impacts of the power differential is the core of ethical awareness.
Detailed explanation-3: -Power differential means the difference in power between persons in positions of authority and those individuals in subordinate positions that result in a vulnerability on the part of the subordinate.
Detailed explanation-4: -The relationship that a person in power has with a subordinate is viewed as especially important in ethical situations because people using this perspective believe that their positions give them an ethical responsibility to protect those with less power.
Detailed explanation-5: -Over time, biases that impacted the problem-recognition stage of the ethical decision-making process reduced the ethical culture of the organisation. When leaders made decisions and were blinded to their potential unethical outcomes, this resulted in future decisions that continued down an unethical path.