A Customer Searching for an SUV Is Trying to Decide

question 148

Essay

A customer searching for an SUV is trying to decide what to buy. She decides to limit her options by using the following strategy. First, the car must be a Honda or a Toyota because the customer believes that they have the highest quality. Second, the vehicle cannot cost more than $30,000 or get less than 10 miles per gallon. Third, the remaining vehicles' interiors, comfort, and instrument placing will be judged by giving each a score and summing them. The SUVs that are left, with the highest summed score, will be selected for an intensive test drive. What type of decision rules was this customer proposing to use?

---

Definitions:

FASB Accounting Standards Codification

The authoritative source of generally accepted accounting principles (GAAP) for public and private companies, established by the Financial Accounting Standards Board (FASB).

Health Care Entities

Organizations involved in the provision of health care services such as hospitals, clinics, and nursing homes.

Statement of Activities

A financial report that shows all revenue and expenses for a specific period, often used by nonprofit organizations.

Net Assets

The difference between total assets and total liabilities, indicating the actual worth of an organization's equity.