Using Certainty Factors, a Rule Declares That IF Competition Is

question 22

Multiple Choice

Using certainty factors, a rule declares that IF competition is strong, CF = 70 AND margins are above 15% CF = 100 THEN sales demand will decline. If both conditions are true, what is the CF of the conclusion?

• A) 100%
• B) 70%
• C) 30%
• D) 21%

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Definitions:

Standard Quantity

The predetermined or estimated amount of materials or inputs needed to produce a single unit of output.

Direct Materials

Basic substances that can be directly linked to the production of a particular item.

Standard Costing

Standard Costing is an accounting method that utilizes standard costs for materials, labor, and overhead for the purpose of controlling costs and identifying variances.

Variable Overhead

Costs that fluctuate in total with changes in activity level, such as the cost of utilities or indirect materials, associated with production or services.