Optimism Bias

Optimism Bias
A cognitive bias that leads individuals to be overly optimistic about the outcomes of their actions, frequently resulting in underestimation of risks, costs, and duration, while overestimating benefits.
Strategic Misrepresentation
In planning and budgeting, strategic misrepresentation involves knowingly understating costs and overstating benefits to secure project approval. Distinct from optimism bias, it is a deliberate policy often justified as part of the negotiation process.

Accounting Terms Lexicon

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