The Probability That Actual Supply Chain Demand Exceeds Average Demand

question 26

Multiple Choice

The probability that actual supply chain demand exceeds average demand is estimated to be 5 percent of the year (365 days) or 18.25 summer days.What total costs are associated with Cnp,when it is determined that the loss of goodwill in the community averages $30,000 per incident? The events provoking such costs include brownouts,power failures,etc.

• A)$500,547
• B)$547,500
• C)$500,000
• D)$365,000

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Definitions:

Plantwide Overhead Rate

A single overhead allocation rate used throughout a manufacturing plant or entire facility, applied uniformly to all products or cost centers.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that generate costs.

Activity-based Costing

A methodology that assigns manufacturing overhead costs to products in a more logical manner based on the activities that incur costs.

Floral Bouquets

An arrangement of flowers, typically designed and wrapped for decorative or gifting purposes.