Decisions That Recur Infrequently and Have No Decision Rules Are

question 51

Multiple Choice

Decisions that recur infrequently and have no decision rules are ____ decisions.

• A) certain
• B) risk
• C) programmed
• D) nonprogrammed
• E) uncertain

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Definitions:

Machine-Hours

A metric for the amount of time a machine is operational, typically used in manufacturing processes.

Fixed Costs

Costs that do not vary with the level of production or sales over a short period, such as rent, salaries, and insurance.

Estimated Activity

The projected level of activity used to allocate overhead costs, often based on metrics such as machine hours or labor hours.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead to products based on a relevant activity base.