Which of the Following Is the Equation for Determining an Expected

question 32

Multiple Choice

Which of the following is the equation for determining an expected value?

• A)(1 - Risk factor)× PDV.
• B)(Risk factor - 1)× PDV.
• C)(1 - Risk factor)÷ PDV.

---

Definitions:

Cost Center

A responsibility center that incurs costs but does not directly generate revenues.

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.