Powell Motors Is Interested in Purchasing New Air Filters for Its

question 16

Multiple Choice

Powell Motors is interested in purchasing new air filters for its automobiles.To select a supplier,the company is to consider two characteristics: reliability and durability.The purchase decision lies on the performance score and importance weight of each characteristic.The performance score with respect to reliability of supplier 1,supplier 2,supplier 3,supplier 4,and supplier 5 are 10,9,8,6,and 7,respectively.The performance score with respect to durability of supplier 1,supplier 2,supplier 3,supplier 4,and supplier 5 are 5,7,8,8,and 6,respectively.The company,however,scores the importance weight of reliability as 9 against the score of 8 for durability.According to the multiattribute model,Powell Motors should select _____.​

• A)​supplier 3
• B)supplier 2
• C)​supplier 1
• D)​supplier 4
• E)​supplier 5

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Definitions:

Standard Hours

The preset amount of time expected to complete a task or work process in an efficient manner.

Units Produced

This refers to the total number of complete units manufactured during a specific period by a company.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs based on the volume of production.

Standard Factory Overhead Rate

The predetermined rate used in cost accounting to allocate estimated overhead costs to individual units of production based on a consistent measure, like labor hours.