Which of the Following Would a Manager Who Wants to Minimize

question 51

Multiple Choice

Which of the following would a manager who wants to minimize her maximum regret choose?

• A)the smallest maximum regret value
• B)the smallest minimum regret value
• C)the smallest difference maximum regret value and the minimum regret value
• D)the greatest difference maximum regret value and the minimum regret value

---

Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Machine Hour

A measurement of production time, counting one hour of operation of a machine or a piece of equipment for manufacturing purposes.

Sales Margin

The difference between the selling price of a product and the cost of goods sold, expressed as a percentage of sales, indicating the profitability of a product.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.