Explain how the optimism bias affects the use of CVP analysis. Be very specific in your answer, listing the types of cash flows that are apt to be overestimated or underestimated.
Answer to relevant QuestionsIn your own words, define ethical behavior. Why do accountants have a professional responsibility to behave ethically?When making an operating decision, are all future costs relevant? Explain.“We treat spoiled units as fully completed regardless of when the spoiled units are detected. This method makes unit costing much simpler.” What is wrong with this approach?A specialty chemical company obtains 73 different products of relatively equal value from processing a single input. Should these products be treated as main products or by-products?Explain what core competencies are. How do they relate to organization strategies?
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