Abstract. That sunk costs are not relevant to rational decision-making is often presented as one of the basic principles of economics. When people are influenced by sunk costs in their decision-making‚ they are said to be committing the “sunk cost fallacy.” Contrary to conventional wisdom‚ we argue that‚ in a broad range of situations‚ it is rational for people to condition behavior on sunk costs‚ because of informational content‚ reputational concerns‚ or financial and time constraints. Once
Premium Rational choice theory Economics Khmer Rouge
Compare the three retailers in terms of inbound transportation cost (from manufacturers to warehouse/retailer) and outbound transportation cost (from warehouse/retailer to customers). Transportation costs‚ as with most e-retailers‚ are higher at Blue Nile than at Tiffany or Zales. The outbound transportation distance and hence costs and time tend to be much higher when inventories are aggregated‚ as is the case at Blue Nile. In the case of Tiffany and Zales‚ some economies of scale can still be
Premium Retailing Sales Inventory
ER Assinment 1 (BCO6603) ERP cost Factors on 5 modules Presented by: Shivpaul Singh Jamwal StudentID: 4502972 (Victoria University) Introduction Currently various organisations implemented different systems to improve their productivity for instance ERP‚ MRP‚ CRM etc. Nonetheless ERP received much attention in contrast to other systems all because of more efficient‚ reliable and support in decision making with the organisation modules. ERP is certain
Premium Enterprise resource planning Computer software Application software
becoming a citizen. Two similar yet very different situations have pushed us to make a decision over their lives that many never wanted to have. What to do with illegal immigrants has been a moral battleground for decades‚ causing some to say we should integrate them into our society‚ while others believe that they should
Premium Immigration Illegal immigration Immigration to the United States
The Costs of Ego Manjur Ahmed Everyone has an ego. The overwhelming majority of us don’t have overinflated egos‚ but we’re all capable of letting our egos run rampant on occasion. When this happens‚ personal success and organization’s performance pay the price. Colin Luther Powell‚ a retired fourstar general in the US Army says “Don’t let your ego get too close to your position‚ so that if your position gets shot down‚ your ego doesn’t go with it “
Premium United States Army Id, ego, and super-ego
comfortable shelter. Gratification is immediate in my life due to the availability of energy. Public health has created an environment of well being among the general public based on these amenities. However‚ a thought that rarely crossed my mind is what is the cost of my gratification. The realization that my need for comfort is slowly destroying the magnificent planet I live on was shaming‚ shocking‚ and terrifying. The instinct to reject this idea is immediate in myself and‚ I suspect‚ the entire population
Premium Personal life Psychology Earth
Case 3 Crossing Borders 1. What competencies are appropriate to ensure greater effectiveness of U.S. employees operating in a maquiladora or other non-U.S. organization? The competencies appropriate to ensure greater effectiveness of U.S. employees operating in maquiladora‚ or other non-U.S. organizations‚ are as follows: · The ability to understand the need for an environmental scan‚ and interpret what the environmental scan highlights‚ before reaching their work destination. This can help
Premium Management Culture Skill
statements. b. analyzing data. c. performance reports. *d. economic events. 4. _______________ is devoted to providing information for external users. a. Management accounting *b. Financial accounting c. Internal accounting d. Cost accounting 5. Financial accounting information is used for a. investment decisions. b. regulatory measures. c. stewardship evaluation. *d. all of these. 6. Which of the following is NOT part of the financial accounting information
Premium Enterprise resource planning Costs Information systems
Cost Cutting Tips Most of us spend more than we need to for a lot of things. If you really can afford luxuries such as gourmet teas or designer clothing and still save for your future‚ you’re lucky. However‚ if you’re struggling to meet the financial goals you’ve set on your retirement roadmap‚ it’s time to look for ways to cut expenses—daily‚ monthly‚ and long-term. Start by seeing if you’d benefit from either of these big cost-cutting strategies: •If you’re paying high interest on a mortgage
Premium Insurance Cost Health insurance
Answers to Warm-Up Exercises E9-1. Answer: Weighted average cost of capital N 10‚ PV $20‚000 (1 0.02) $19‚600‚ PMT Solve for I 8.30% 0.08 $20‚000 $1‚600‚ FV $20‚000 E9-2. Cost of preferred stock Answer: The cost of preferred stock is the ratio of the preferred stock dividend to the firm’s net proceeds from the sale of the preferred stock. rp Dp Np rp (0.15 $35) ($35 $3) rp $5.25 $32 16.4% E9-3. Cost of common stock equity Answer: The cost of common stock equity can be found by dividing the dividend
Premium Trigraph Weighted average cost of capital Stock