Table A.2 Use the Following to Answer the Questions Below

question 54

Multiple Choice

Table A.2
Use the following to answer the questions below.
A company that is introducing a new product has to choose between four different manufacturing methods, referred to as methods A, B, C and D. Depending on the demand for the product, they forecast different levels of expenses for the year (values are in thousands) . The company has identified three possible states of nature for economic growth, and named them High, Medium, and Low.

-Using the information in Table A.2, which alternative is best in accordance with a decision criterion of minimax regret?

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Adjusted Trial Balance

A financial statement prepared after adjusting entries are made, ensuring the total debits equal total credits.

Financial Statement Column(s)

Sections or divisions in financial statements used to separate and categorize financial data into meaningful groups for analysis, such as assets, liabilities, equity, revenue, and expenses.

Net Income

The net income of a business following the subtraction of all costs and taxes from the overall income.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals, used to prepare financial statements.