A Tabular Presentation That Shows the Outcome for Each Decision

question 101

Multiple Choice

A tabular presentation that shows the outcome for each decision alternative under the various states of nature is called:

• A)a payback period matrix.
• B)a decision matrix.
• C)a decision tree.
• D)a payoff table.

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Definitions:

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it measures the variable cost per unit of output.

Average Total Cost

The per unit cost of production, calculated by dividing the total costs by the quantity of output produced.