Lean Systems Often Rely on a Method of Overhead Allocation

question 81

Multiple Choice

Lean systems often rely on a method of overhead allocation known as

• A)direct-labor allocation.
• B)capital-charge allocation.
• C)mixed-model accounting.
• D)activity-based costing.
• E)indirect-labor allocation.

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Definitions:

Risk-loving

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Fair Bet

A gambling term where the expected winnings are equal to the expected losses, meaning the bet has no advantage for either the house or the gambler.

Expected Utility

A concept in economics and decision theory that represents the average of all possible outcomes under uncertainty, weighted by their respective probabilities and the utility or satisfaction each outcome provides.