The Operations Manager for a Well-Drilling Company Must Recommend Whether

question 99

Multiple Choice

The operations manager for a well-drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long-run profits (in $000) will vary with the amount of precipitation (rainfall) as follows:

If he feels the chances of low, normal, and high precipitation are 30 percent, 20 percent, and 50 percent respectively, what are expected long-run profits for the alternative he will select?

• A)$140,000
• B)$170,000
• C)$285,000
• D)$305,000
• E)$475,000

Grasp the significance of group size on the functioning and intimacy levels within the group.

Acknowledge the importance and methods of establishing group guidelines and norms.

Recognize the role and methods of preliminary activities (e.g., interviews, pregroup meetings) in enhancing treatment group effectiveness.

Understand the concepts of functional and dysfunctional behaviors within groups and the role of the leader in managing these.

---

Definitions:

Factory Overhead

The indirect costs associated with manufacturing, including expenses like utilities and maintenance not directly tied to the production of goods.

Predetermined Factory Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a standard cost system.

Estimated Total Factory Overhead Costs

The projected total of all indirect expenses related to the production process, including indirect labor, materials, and other overhead costs.

Estimated Activity Base

A projected measure of activity, such as labor hours or machine hours, used for allocating overhead costs in budgeting and costing.