Why can unitized fixed costs cause errors in decision-making?

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Managerial Accounting

ISBN: 9780073022857

7th Edition

Authors: Ronald W Hilton

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Question Posted: Mar 12, 2013 03:10 AM

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Some errors in decision making can be attributed to the notion of decision making from the gut. Explain what is meant by this and how such errors can happen.
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Why can unitized fixed costs cause errors in decision-making?

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