Why Is the Use of Weights in Scoring Models Subject

question 8

Multiple Choice

Why is the use of weights in scoring models subject to serious criticism?

• A)Weightings are necessarily judgmental
• B)They cannot be measured using sensitivity analysis
• C)They use all-or-nothing,yes-or-no answers as factors
• D)They can be used only for open-ended questions

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Definitions:

Joint Costs

Costs that are incurred in the process of producing two or more products or services simultaneously and are not readily assignable to individual products.

Inventory Valuation

The method used by businesses to assess the value of their inventory, taking into account the cost of acquiring or producing the goods and any market changes.

Profitability of Joint Products

The assessment of earnings from products that are produced simultaneously from the same process and cannot be distinguished cost-wise until a certain point of production.

Qualitative Factors

Qualitative factors are non-numeric variables or considerations that affect decision-making, such as company reputation or customer satisfaction.