Question
Which of the following is a common bias that can affect
managerial decision-making?Solution
Anchoring bias occurs when individuals rely too heavily on the first piece of information they encounter (the "anchor") when making decisions. This bias can lead to skewed decision-making, especially if the anchor is irrelevant or misleading.
A machinery costing ₹10 lakhs has a useful life of 5 years and a salvage value of ₹1 lakh. Using the straight-line method, the firm changes the usef...
Under which condition will no depreciation be charged on a fixed asset during a financial year?
A company buys a machine for ₹12,00,000 and expects to use it for 8 years with residual value ₹80,000. Under straight-line method, annual depreciati...
A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it s...
A machine costing ₹8,00,000 has a useful life of 5 years and scrap value of ₹50,000. Using WDV method at 30%, what will be the book value at the end...
The primary cause of depreciation is:
Under the Written Down Value (WDV) method, depreciation is:
NRV or net realizable value of inventory is the expected selling price or market value less....
Which of the following is NOT a method of charging depreciation?
If a firm has been changing its depreciation policy every year, it is violating the_______ concept/principle of accounting.
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