Decision-Making Conditions (Scenario) Sabah Is the Manager for CaterersRUs, a Medium-Sized Catering Company

question 49

Multiple Choice

Decision-Making Conditions (Scenario)
Sabah is the manager for CaterersRUs, a medium-sized catering company. She is responsible for initiating new client contacts, and staffing both existing and new assignments. She is currently struggling with existing information about the profitability of existing and future clients.
-Sabah wishes to minimize her regret and will probably opt for a ________ strategy.

• A) minimax
• B) certainty
• C) maximax
• D) risk

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Definitions:

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.

Factory Overhead

Expenses related to operating a factory that cannot directly traced to specific units produced, including utilities, depreciation, and maintenance.

Direct Labor

The labor cost of workers directly involved in the production of goods or the provision of services, considered a variable cost.

FIFO Method

An inventory valuation method where the first goods purchased are the first to be sold, standing for "First In, First Out".