COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When we have practiced something a lot.
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When we have too much information to process.
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When the problem is highly abstract.
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When we need to transfer information from one situation to another.
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Detailed explanation-1: -System 1 “is the brain’s fast, automatic, intuitive approach”[2]. System 1 activity includes the innate mental activities that we are born with, such as a preparedness to perceive the world around us, recognise objects, orient attention, avoid losses-and fear spiders!
Detailed explanation-2: -System 1 Thinking: Our brains’ fast, automatic, unconscious, and emotional response to situations and stimuli. This can be in the form of absentmindedly reading text on a billboard, knowing how to tie your shoelaces without a second thought, or instinctively hopping over a puddle on the sidewalk.
Detailed explanation-3: -An example of System 1 thinking is detecting that one object is more distant than another, while an example of System 2 thinking is parking in a narrow space. Using the two system view as the foundation, Kahneman discusses human judgment and decision-making with all of its biases and heuristics.