Which of the Following Is an Assumption of Rationality

question 139

Multiple Choice

Which of the following is an assumption of rationality?

• A) The problem is ambiguous.
• B) Multiple goals are to be achieved.
• C) Time and cost constraints are known.
• D) Preferences change quickly.
• E) All alternatives and consequences are known.

---

Definitions:

Material Amount

Refers to a sum or quantity of materials that is considered significant or substantial in size or value.

Underapplied Overhead

A situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of administrative personnel within a factory, but not directly tied to specific units of production.

Overcosted

A situation where the allocated cost of a product or service is greater than the actual cost incurred, leading to potential mispricing or profit loss.