Which of the following statement about biases is true?
A) Biases can affect management accounting information, but not financial accounting information
B) Managers cannot work toward eliminating their biases
C) Biases reduce the quality of decisions
D) Biased managers are more likely to explore alternatives before making a decision

Question

Quizplus · Accepted Answer

Biases can reduce the quality of decisions as they can lead managers to ignore valuable information or make decisions based on personal preferences rather than objective data. A is false as biases can affect both management and financial accounting information. B is false as managers can work to reduce their biases by being aware of them and implementing strategies to mitigate their effects. D is false as biased managers may be more likely to stick to their initial decision rather than exploring alternatives.

Which of the Following Statement About Biases Is True