The PostHoc Company Specializes in Justifying Decisions That Have Already

question 56

Essay

The PostHoc Company specializes in justifying decisions that have already been made.One day they fielded a request to perform a project risk analysis and compute the risk factor for buying an investment property on St.Charles Street in the Big Easy.There was no time (and no need to be perfectly honest)to gather any data regarding the situation;all they had to do was provide an equation and a number that showed the project wasn't too risky for the investor that had already made a decision to proceed.The investor wanted the overall project risk factor to come in at an even 0.5 and also wanted all of the scores for the seven factors that make up this score to have identical values.What is the probability of failure for complexity if these two criteria are met?

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Definitions:

Weighted-Average Method

An inventory costing method that assigns the average cost of the goods available for sale to both ending inventory and cost of goods sold.

Process Costing

A costing method used for homogeneous products that are continuously produced, calculating costs for each process or department and averaging it over all units produced.

Equivalent Unit Cost

The costing method used in process costing that calculates the cost per unit taking into consideration the stage of completion of goods in process.

Process Costing

An accounting method used where production is continuous, and costs are assigned to units of product based on the processes they undergo.