A Conservative or Risk-Averse Approach to One-Time Decisions Without Event

question 18

Multiple Choice

A conservative or risk-averse approach to one-time decisions without event probabilities is ____.

• A)Maximax
• B)Maximin
• C)Minimax regrets
• D)Expected value

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Definitions:

Activity Rates

In activity-based costing, the costs assigned to goods and services based on the specific activities and resources that go into their production or delivery.

Activity Cost Pools

Aggregations of all the costs associated with a particular activity, used in activity-based costing.

Departmental Overhead Rates

Refers to the allocation of indirect costs to specific departments within a company, which is used for cost control and pricing decisions.

Machine Hours

A measure of production activity; the total hours that machines are operating in a manufacturing process.