The Branches on a Decision Tree

question 60

Multiple Choice

The branches on a decision tree

• A) illustrate possible combinations of fixed and variable costs.
• B) are a convenient way to illustrate the results of a sensitivity analysis.
• C) show possible project break-even points.
• D) show possible management decisions and possible uncertain consequences.

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Definitions:

Productivity Gains

Increases in the amount of output produced per unit of input, reflecting improvements in efficiency, technology, or processes.

Transferability

The ability of an asset to be transferred or converted easily from one individual to another without affecting its value.

Human Capital

A collection of proficiencies, knowledge, or invisible assets owned by individuals that can be leveraged to bring about economic prosperity for themselves, their work environments, or their community.

Compensating Differential

A difference in wages that compensates workers for undesirable aspects of a job, such as hazardous working conditions or undesirable hours.