In a Decision Tree,the Accept/reject Decision Is Dependent Upon

question 33

Multiple Choice

In a decision tree,the accept/reject decision is dependent upon

• A)cash flows,probabilities,and future decisions.
• B)only the cash flows from the successful path.
• C)only the cash flows and probabilities of the successful path.
• D)the path where the probabilities sum to one.
• E)only the lower half of the tree.

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Definitions:

Conversion Costs

All manufacturing costs other than direct material costs.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Direct Materials Costs

Costs directly traceable to the production of a product, including raw materials and component parts.