A Local Business Owner Is a Bit Uncertain of the Demand

question 36

Essay

A local business owner is a bit uncertain of the demand forecast, and is timidly approaching the capacity decision for a business he is about to open. Here's how he describes the decisions that confront him over the next two years."First, I have to choose between building a large plant initially and building a small one that has room to expand. Or I could rent now, and decide whether to build next year. That one, too, could be the large version or the small. If I build small, then after one year, I can review how good business was, and decide whether to expand. If I build large, there is no further option to enlarge."Do not concern yourself with probabilities or payoff values .Simply draw the tree that illustrates the manager's decision alternatives and the chance events that go along with them. Use standard symbols for decision tree construction, and label all parts of your diagram carefully. To simplify, assume that business in the first year, and in the second, can be only "good" or "bad."

Apply appropriate assessment strategies for patients with communication barriers, such as aphasia.

Understand appropriate nurse-patient communication techniques.

Know how to construct and interpret a genogram.

Identify significant family history diseases or problems to be included in assessments.

---

Definitions:

Variable Manufacturing Overhead

Indirect production costs that fluctuate with the level of production output, such as utilities for the manufacturing plant.

Direct Labor-Hours

The total number of hours worked by employees directly involved in manufacturing goods or providing services.

Direct Materials Purchases Variance

A measure used in managerial accounting to compare the actual cost of direct materials to the expected cost.

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.