The Condition Under Which Ambiguity Occurs Is When

question 106

Multiple Choice

The condition under which ambiguity occurs is when:

• A) alternatives are difficult to define.
• B) objectives are well defined.
• C) information about outcomes is readily available.
• D) all the alternatives are known.
• E) decisions are already made.

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Definitions:

Predetermined Overhead Rate

Predetermined overhead rate is calculated by dividing the estimated manufacturing overhead costs by an allocation base, used to apply overhead costs to products.

Machine-Hours

A measure of production time based on the number of hours a machine is operated.

Direct Labor-Hours

Summation of hours by employees directly contributing to manufacturing efforts.

Machining

A manufacturing process involving the cutting, shaping, or finishing of material, typically metal, using machine tools.