When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias.
A. anchoring and adjustment
B. confirmation
C. availability
D. representativeness
E. sunk cost
E. sunk cost
The sunk-cost bias, or sunk-cost fallacy, is when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it. Most people have an aversion to "wasting" money. Especially if large sums have already been spent, they may continue to push on with an iffy-looking project to justify the money already sunk into it.
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Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers?
A. make Age Discrimination in Employment Act (ADEA) waivers compulsory B. inform employees that they may consult with a lawyer before signing C. provide lesser benefits than would otherwise be available upon retirement D. provide employees with an annual bonus and health insurance after the retirement E. allow employees no more than 48 hours before signing the retirement agreement
A well-known producer of breakfast cereals has decided to hire producers in different countries so that the cereals marketed under their brand are locally produced in the respective countries
This would not only appeal more to consumers who prefer domestically produced goods, but would also create jobs in the host-country enhancing the brand's image further. This is an example of ________. A) management contracting B) franchising C) greenfield venturing D) contract manufacturing E) straight extension
It is not necessary to provide an area on the performance report for a manager's reasons for variances
Indicate whether the statement is true or false
Which of the following is included in prime costs?
A) Overhead costs B) Indirect materials costs C) Selling and administrative costs D) Direct labor costs