Pat is the manager of a large project that has been underway for the last eight months. It has now become apparent that, due to various external factors, the project is unlikely to succeed. Even though the best option would be to withdraw from the project, Pat continues to pump money and resources into it in the hope that the project's prospects will change. He reasons that he doesn't want all those months of hard work to go to waste. This is an example of the ________.
A. availability bias
B. hindsight bias
C. sunk costs error
D. self-serving bias
Answer: C
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Thornton, Inc. has budgeted sales for the months of September and October at $303,000 and $289,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month. Calculate cash collections for the month of October.
A) $173,400 B) $297,400 C) $294,600 D) $181,800
The management strategy of environmental sustainability focuses on developing ways to sustain the environment while also producing profits
Indicate whether the statement is true or false
Credit entries are used to:
A) increase asset accounts. B) increase liability accounts. C) increase expense accounts. D) increase dividends.
Which of the following is the least likely to be a consideration in a resource utilization decision?
A) Shelf space B) Direct labor hours C) Machine time D) Fixed costs