A Major Disadvantage of the Combination Selection Decision Making Method

question 46

Multiple Choice

A major disadvantage of the combination selection decision making method is that it is:

• A)less accurate than the multiple cutoff method.
• B)limiting because one predictor attribute cannot compensate for another.
• C)more costly than the multiple hurdle approach.
• D)less reliable than other methods.

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Definitions:

Machine Hours

A measure of production time, representing the hours a machine is operated in the manufacturing of a product.

Costing System

A method or procedure adopted by a business to estimate the cost of its products for inventory valuation, cost control, and decision making.

Overapplied Overhead

Occurs when the overhead allocated to products or services is more than the actual overhead costs incurred.

Profit Margin

The percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a product or service.