The Decision Aid Involving the Construction of a Key List

question 66

Multiple Choice

The decision aid involving the construction of a key list of inputs for a decision, importance weights for each input, and objective ratings of each input for each decision alternative is known as:

• A)an actuarial model
• B)an objective linear model
• C)a subjective linear model
• D)Both a and b are correct.
• E)None of the above are correct.

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Definitions:

Overhead Incurred

Overhead incurred refers to the total costs associated with running a business that are not directly tied to a specific product or service.

Overhead Applied

The allocation of indirect costs to produced goods or services, based on a predetermined rate or method.

Underapplied Overhead

This refers to the situation where the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Cost of Goods Sold

The immediate expenses linked to the manufacture of goods a company sells, which covers both materials and workforce.