If All Criteria in the Decision Are Equal, Weighting the Criteria

question 88

Multiple Choice

If all criteria in the decision are equal, weighting the criteria ____________ .

• A) is not needed
• B) improves the criteria
• C) produces excellent decisions
• D) improves decision making when large numbers of criteria are involved

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Definitions:

Controlled Costs

Expenses that a company can manage or influence directly.

Static Planning Budget

A budget based on a fixed set of assumptions and output levels, without adjustments for actual activity or performance.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business, such as materials and labor.

Activity Variance

The difference between a revenue or cost item in the flexible budget and the same item in the static planning budget. An activity variance is due solely to the difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.