Q&A Hero

Q: Sutton Company uses a process costing system. In May, 80,000 units were finished and transferred to finished goods. Ending Work in Process included 20,000 unfinished units 30% complete. Calculate the equivalent units of production for the year using the weighted average method.

Q: The EMV of a decision with three states of nature is $33,000. If the profit/value under the states of nature A, B, and C is $10,000, $20,000, and $50,000 and states B and C have equal probabilities, determine the likelihood of state of nature A.

Q: A poker player is considering three different options after his opponent bet 200 before him. If the player folds, he will lose instantly. If the player calls, he figures he will win half the time. If he raises he figures that the opposing player will not re-raise him, but rather will either call or fold. He figures the opposing player will call only of the time, folding the other of the time. If the opposing player calls his raise, he figures he will never win. The pot size is 1,000 (including the opposing player's bet). a. Draw a decision tree for this scenario including the information provided in part b. b. Suppose that the player is thinking of raising to $400 (he will put in 200 to match the opponent's bet and another 200 as a raise, his opponent would then have to put in 200 more to call the raise). Is this the best option or should he instead call or fold? c. At what raise size is the player's EMV of a raise equivalent to simply calling?

Q: Describe the flow of overhead costs in a process costing system, including accounts used.

Q: Describe the flow of labor in a process costing system, including accounts used.

Q: Suppose a manufacturing plant is considering three options for expansion. The first one is to expand into a new plant (large) , the second to add on third-shift to the daily schedule (medium) , and the third to do nothing (small) . There are three possibilities for demand. These are high, medium, and low with each having an equal likelihood of occurring. Suppose that the profits for the expansion plans are as follows (respective to high, medium, low demand). The large expansion profits are $100000, $10000, -$10000, the medium expansion choice $40000, $40000, $5000 and the small expansion choice $15000, $15000, $15000. Calculate the EMV of each choice. Which of the expansion plans should the manager choose?

Q: Describe the flow of materials in a process costing system, including accounts used.

Q: A do-it-yourself homeowner is installing a new toilet. While installing the toilet he must decide on what kind of connecting pipe he will install to the water supply. There are two available options, one that has a shut-off valve in case of a leak and a cheaper one without the shut-off valve. Suppose that the shut-off valve pipe costs an extra ten dollars and that the homeowner must buy one of the two. a. Draw a decision tree for this scenario, labeling the cost of a leak as X and the chance of a leak as P. b. If the chance of a leak causing household damage is 1%, at what $ amount of household damage is the owner neutral on which pipe to buy? c. If the cost of a leak would be $10,000 what is the maximum % chance to leak at which the homeowner would prefer to buy the cheaper pipe? d. If the cost of a leak is $1,000 and the chance to flood .1% which pipe should the homeowner buy?

Q: Bratt's Bed and Breakfast, in a small historic New England town, must decide how to subdivide (remodel) the large old home that will become their inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, and two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option. Which option has the highest expected value? Annual profit under various demand patterns Capacity p Average p A (Modernize all) $90,000 .5 $25,000 .5 B (Modernize 2nd) $80,000 .4 $70,000 .6 C (Status Quo) $60,000 .3 $55,000 .7

Q: The campus bookstore sells highlighters that it purchases by the case. Cost per case, including shipping and handling, is $200. Revenue per case is $350. Any cases unsold will be discounted and sold at $175. The bookstore has estimated that demand will follow the pattern below Demand level Probability 10 cases 20 percent 11 cases 20 percent 12 cases 40 percent 13 cases 15 percent 14 cases 5 percent a. Construct the bookstore's payoff table. b. How many cases should the bookstore stock in order to maximize profit? c. How would your answer differ if the clearance price were not $175 per case but $225 per case? (It is not necessary to re-solve the problem to answer this.)

Q: Job order costing and process costing are two major costing systems used in manufacturing. Briefly contrast the characteristics of these two systems.

Q: Earl Shell owns his own Sno-Cone business and lives 30 miles from a beach resort. The sale of Sno-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $120 per day in fair weather, $10 per day in bad weather. At home, he will profit $70 in fair weather, $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather. a. Construct Earl's decision tree. b. What decision is recommended by the expected value criterion?

Q: Daily sales of bread by Salvador Monella's Baking Company follow the historical pattern shown in the table below. It costs the bakery 50 cents to produce a loaf of bread, which sells for 95 cents. Any bread unsold at the end of the day is sold to the parish jail for 25 cents per loaf. Construct the decision table of conditional payoffs. How many loaves should Sal bake each day in order to maximize contribution? Demand 400 500 600 700 800 Probability .20 .20 .40 .15 .05

Q: Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. Develop a decision tree for this situation and indicate which type of truck he should select. States of Nature Alternatives Lower gas prices Gas prices unchanged Higher gas prices probability .3 .5 .2 Subcompact 16,000 19,000 21,000 Compact 15,000 20,000 22,000 Full size 24,000 19,000 6,000

Q: The campus bookstore sells stadium blankets embroidered with the university crest. The blankets must be purchased in bundles of one dozen each. Each blanket in the bundle costs $65, and will sell for $90. Blankets unsold by homecoming will be clearance priced at $20. The bookstore estimates that demand patterns will follow the table below. a. Build the decision table. b. What is the maximum expected value? c. How many bundles should be purchased? Demand level Probability 1 bundle 10 percent 2 bundles 30 percent 3 bundles 50 percent 4 bundles 10 percent

Q: Earl Shell owns his own Sno-Cone business and lives 30 miles from a beach resort. The sale of Sno-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $110 per day in fair weather, $20 per day in foul weather. At home, he will profit $70 in fair weather, $50 in foul weather. Assume that on any particular day, the weather service suggests a 60% chance of fair weather. a. Construct Earl's payoff table. b. What decision is recommended by the expected value criterion? c. What is the EVPI?

Q: Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. States of Nature Alternatives Lower gas prices Gas prices unchanged Higher gas prices probability .3 .5 .2 Subcompact 16,000 21,000 23,000 Compact 15,000 20,000 22,000 Full size 18,000 19,000 6,000 Calculate the expected monetary value for each decision alternative. Which decision yields the highest EMV?

Q: E; 2. A; 3. D; 4. G; 5. F; 6. B; 7. C Short Answer Questions

Q: Steve Gentry, the operations manager of Baja Fabricators, wants to purchase a new profiling machine (it cuts compound angles on the ends of large structural pipes used in the fabrication yard). However, because the price of crude oil is depressed, the market for such equipment is down. Steve believes that the market will improve in the near future and that the company should expand its capacity. The table below displays the three equipment options he is currently considering, and the profit he expects each one to yield over a two-year period. The consensus forecast at Baja is that there is about a 30% probability that the market will pick up "soon" (within 3 to 6 months) and a 70% probability that the improvement will come "later" (in 9 to 12 months, perhaps longer). Profit from Capacity Investment (in Dollars) Equipment Option Market picks up "soon" p = 0.30 Market picks up "later" p = 0.70 Manual Machine -120000 210000 NC Machine 140000 160000 CNC Machine 200000 -200000 a. Calculate the expected monetary value of each decision alternative. b. Which equipment option should Steve take?

Q: Match the following terms with the definitions. __________ (1) Equivalent units of production __________ (2) Job order costing system __________ (3) Hybrid costing system __________ (4) Process operations __________ (5) Process costing system __________ (6) Materials consumption report __________ (7) Process cost summary A. Costing system that measures costs per unit upon completion of a job. B. Document that summarizes the materials a department uses when inventory moves continuously through the manufacturing process during a reporting period; replaces materials requisition. C. Report of total costs charged to a department, describes its equivalent units of production achieved, and allocates costs among units worked on in the period. D. A manufacturing system that contains features of both process costing and job order costing systems. E. Number of units that could have been started and completed given the costs incurred during the period. F. System of measuring unit costs at the end of a period by combining costs per equivalent unit from each separate department. G. Mass production of similar products in a continuous flow of sequential processess.

Q: 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."

Q: A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. Light Demand Moderate Demand Heavy Demand Probability 0.25 0.45 0.3 Wind-up action $325,000 $190,000 $170,000 Pneumatic action $300,000 $420,000 $400,000 Electrical action -$400,000 $240,000 $800,000 a. What is the EMV of each decision alternative? b. Which action should be selected? c. What is the expected value with perfect information? d. What is the expected value of perfect information?

Q: A company uses the FIFO method for inventory costing. At the start of the period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825. Compute the equivalent cost per unit for labor. A.$4.40. B.$4.76. C.$4.19. D.$4.55. E.$4.61.

Q: A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are three different mechanisms which can be installed in these "pets." These toys will sell for the same price regardless of the mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, is dependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand a forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in the table below. Demand Wind-up action Pneumatic action Electronic action Light $250,000 $90,000 -$100,000 Moderate 400,000 440,000 400,000 Heavy 650,000 740,000 780,000 Construct the appropriate decision tree to analyze this problem. Use standard symbols for the tree. Analyze the tree to select the optimal decision for the manufacturer.

Q: A company uses the weighted average method for inventory costing. At the start of a period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. The production department had conversion costs in the beginning goods is process inventory of $99,000 and total conversion costs added during the period are $726,825. Compute the conversion cost per equivalent unit. A.$4.40. B.$4.76. C.$4.19. D.$4.55. E.$4.61.

Q: An operations manager's staff has compiled the information below for four manufacturing alternatives (E, F, G, and H) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Forecasts indicate that there is a 0.1 probability of acceptance level 1, 0.2 chance of acceptance level 2, 0.4 chance of acceptance level 3, and 0.3 change of acceptance level 4. States of Nature 1 2 3 4 Alternative E 50 50 70 60 Alternative F 30 50 80 130 Alternative G 70 80 70 60 Alternative H -140 -10 150 220 Using the criterion of expected monetary value, which production alternative should be chosen?

Q: A company uses the FIFO method for inventory costing. At the beginning of a period, the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. Compute the number of equivalent units produced by the department. A.181,500. B.165,000. C.173,500. D.145,000. E.187,000.

Q: An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. States of Nature 1 2 3 4 Alternative A 50 55 60 65 Alternative B 30 50 80 130 Alternative C 70 80 70 65 Alternative D -100 -10 150 220 a. Assuming a maximax strategy, which alternative would be chosen? b. If maximin were used, which would be chosen? c. If the states of nature were equally likely, which alternative should be chosen?

Q: The construction manager for Acme Construction, Inc. must decide whether to build single family homes, apartments, or condominiums. This is not a product-mix problem, but an all-or nothing decision. He will hire workers and rent equipment appropriate for one action only. He estimates annual profits (in thousands of dollars) will vary with population trends as follows: Dwelling type Population steady Population grows slowly Population grows rapidly Single family $100 $90 $70 Apartments 50 170 90 Condominiums -20 100 220 a. If he uses the maximin criterion, which type of dwellings will he choose to build? Show your supporting calculations. b. If he uses the equally likely criterion, which kind of dwellings will he choose to build? Show your supporting calculations. c. If the construction manager were an optimist, what criterion would he choose? What would be the choice of dwelling for that criterion? Show your supporting calculations.

Q: During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the FIFO method. A.165,000; 165,000. B.135,000; 119,000. C.140,000; 130,250. D.165,000; 144,000. E.144,000; 144,000.

Q: Describe the meaning of EVPI. Provide an example in which EVPI can help a manager.

Q: Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75. A total of 250,000 units of product were completed and transferred out as finished goods during the month, and 36,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is: A.$650,000. B.$135,000. C.$1,816,100. D.$1,587,500 E. $228,600

Q: Define expected monetary value (EMV).

Q: What limitation(s) do decision trees overcome compared to decision tables?

Q: Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Direct Materials Conversion Units Completed and transferred out 50,000 50,000 Units in Ending Work in Process: Direct Materials (15,000 * 100%) 15,000 Conversion (15,000 * 80%) 12,000 Equivalent Units of Production 65,000 62,000 Cost per Equivalent Unit Costs of beginning work in process $40,500 $59,700 Costs incurred this period 136,000 183,100 Total costs $176,500 $242,800 Cost per equivalent unit $2.71 per EUP $3.92 per EUP If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs? A.Work in ProcessLabeling $183,100; Work in ProcessCanning $183,100. B.Work in ProcessLabeling $196,000; Work in ProcessCanning $196,000. C.Finished GoodsLabeling $183,100; Finished GoodsCanning $183,100. D.Work in ProcessLabeling $196,000; Finished GoodsCanning $196,000 E.Finished Goods $242,800; Work in Process $242,800

Q: If a decision maker is a pessimist, what decision-making criterion is appropriate? Why?

Q: Which technique results in an optimistic decision? Why?

Q: Identify and describe three methods used for decision making under conditions of uncertainty.

Q: How is the expected value of perfect information (EVPI) found?

Q: What is a conditional value?

Q: During January, the production department of a process operations system completed and transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units were in process in the production department and were 65% complete with respect to labor. The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method. A.$6.34. B.$3.77. C.$3.51. D.$4.25. E.$3.95.

Q: What are decision tables?

Q: During July, the production department of a process operations system completed and transferred to finished goods 10,000 units that were in process at the beginning of July and 76,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 15,000 additional units were in process in the production department and were 100% complete with respect to materials and 25% complete with respect to labor. The beginning inventory included labor cost of $52,100 and the production department incurred direct labor cost of $450,750 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method. A.$1.72. B.$5.60. C.$.84. D.$5.02. E.$5.85.

Q: Explain the graphical shapes used in decision tree analysis.

Q: Identify, in order, the six steps of analytical decision making.

Q: During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of March, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. A.$3.70. B.$2.38. C.$2.82. D.$3.12. E.$4.79.

Q: During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. A.$4.03. B.$3.05. C.$2.38. D.$3.16. E.$2.57.

Q: In the context of decision-making, define alternative.

Q: In the context of decision-making, define state of nature.

Q: During November, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of November, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to conversion for November using the weighted-average method. A. 145,000. B. 157,000. C. 55,500. D. 83,500. E.185,000.

Q: A branch of a decision tree that is less favorable than other available options may be __________.

Q: The square symbol used in drawing a decision trees represents a __________ node.

Q: A(n) __________ is an occurrence or situation over which the decision maker has little or no control.

Q: A(n) __________ is a graphical means of analyzing decision alternatives and states of nature.

Q: Andrews Corporation uses a process costing system for manufacturing. The following information is available for the February in its Polishing Department: Equivalent units of productiondirect materials 110,000 EUP Equivalent units of productionconversion 95,000 EUP Costs in beginning Work in Processdirect materials $49,000 Costs in beginning Work in Processconversion $36,000 Costs incurred in Februarydirect materials $414,000 Costs incurred in Februaryconversion 520,000 The cost per equivalent unit of production for direct materials is: A. $9.26 B. $4.21 C. $4.97 D. $5.05 E. $5.85

Q: __________ is the difference between the payoff under perfect information and the payoff under risk.

Q: __________ is the expected payout or value of a variable that has different possible states of nature, each with an associated probability.

Q: Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June.The journal entry to record June sales is: Direct materials used $87,000 Direct labor used 160,000 Predetermined overhead rate (based on direct labor) 155% Goods transferred to finished goods 432,000 Cost of goods sold 444,000 Credit sales 810,000 A.Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. B.Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. C.Debit Cost of Goods Sold $444,000; credit Sales $444,000. D.Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. E.Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Q: __________ is the criterion for decision making under certainty that assigns equal probability to each state of nature.

Q: __________ is the criterion for decision making under uncertainty that finds an alternative that maximizes the minimum outcome or consequences.

Q: A(n) __________ is a tabular means of analyzing decision alternatives and states of nature.

Q: A problem that involves a sequence of decisions A) cannot be analyzed with expected monetary value B) can be better analyzed with a decision tree than by a decision table C) must be analyzed in the same order that the decisions are made D) cannot be analyzed with decision tree software E) can only be analyzed using decision making under certainty

Q: A primary advantage of decision trees compared to decision tables is that decision trees A) are more accurate B) are faster C) are smaller D) are cheaper E) can be used for sequential problems

Q: Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of goods completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods manufactured during October is: A.Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000. B.Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300. C.Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000. D.Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200. E.Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.

Q: All of the following steps are taken to analyze problems with decision trees except A) define the problem B) structure or draw a decision tree C) assign probabilities to the alternatives D) estimate payoffs for each possible alternative/state of nature combination E) solve the problem by computing expected monetary values for each state of nature node

Q: A decision tree is a(n) A) algebraic representation of alternatives and states of nature B) behavioral representation of alternatives and states of nature C) matrix representation of alternatives and states of nature D) graphic representation of alternatives and states of nature E) tabular representation of alternatives and states of nature

Q: Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075. The complete journal entry to be made by Wyman at the time of this sale is: A.Debit Accounts Receivable $1,075; credit Sales $1,075; debit Cost of Goods Sold $800; credit Finished Goods Inventory $800. B.Debit Accounts Receivable $1,075; credit Sales $275; credit Finished Goods Inventory $800. C.Debit Cost of Goods Sold $1,075; credit Sales $1,075. D.Debit Finished Goods Inventory $800; debit Sales $1,075; credit Accounts Receivable $1,075; credit Cost of Goods Sold $800. E.Debit Accounts Receivable $1,075; debit Selling expense $800; credit Sales $1,075; credit Cost of Goods Sold $800.

Q: Decision trees A) give more accurate solutions than decision tables B) give less accurate solutions than decision tables C) are especially powerful when a sequence of decisions must be made D) are rarely used because one needs specialized software to graph them E) are too complex to be used by decision makers

Q: A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.2; 1 unit, 0.3; 2 units, 0.4, and 3 units, 0.1. The product costs $8 per unit and sells for $25 per unit. The largest conditional value (profit) in the entire payoff table for this scenario is A) $-24 profit B) $-8 profit C) $17 profit D) $51 profit E) $75 profit

Q: A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.2; 1 unit, 0.3; 2 units, 0.4, and 3 units, 0.1. The product costs $8 per unit and sells for $25 per unit. The conditional value for the decision alternative "Stock 3" and state of nature "Sell 1" is A) 1.4 units B) $1 profit C) $25 profit D) $-8 profit E) none of the above

Q: What is the expected value of perfect information of the following decision table? States of Nature Alternatives S1 S2 p .6 .4 Option 1 200 300 Option 2 50 350 A) 0 B) 20 C) 50 D) 150 E) 200

Q: What is the expected value with perfect information in the following decision table? States of Nature Alternatives S1 S2 p .6 .4 Option 1 200 300 Option 2 50 350 A) 50 B) 200 C) 260 D) 300 E) 350

Q: What is the EMV for Option 2 in the following decision table? States of Nature Alternatives S1 S2 p .6 .4 Option 1 200 300 Option 2 50 350 A) 50 B) 100 C) 170 D) 200 E) 350

Q: What is the EMV for Option 1 in the following decision table? States of Nature Alternatives S1 S2 p .6 .4 Option 1 200 300 Option 2 50 350 A) 200 B) 240 C) 250 D) 260 E) 300

Q: Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly Department, $23,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor would include: A. Debit Work in Process Inventory $74,000; debit Factory Overhead $33,000. B. Debit Work in Process Inventory $74,000; debit Wages Expense $33,000 C. Debit Work in Process Inventory $97,000; debit Wages Expense $10,000. D. Debit Work in Process Inventory $107,000. E. Debit Work in Process Inventory $97,000; debit Factory Overhead $10,000.

Q: What is the expected value with perfect information of the following decision table? States of Nature Alternatives S1 S2 p .4 .6 Option 1 10,000 30,000 Option 2 5,000 45,000 Option 3 -4,000 60,000 A) 5,000 B) 10,000 C) 40,000 D) 60,000 E) 70,000

Q: What is the EMV for Option 2 in the following decision table? States of Nature Alternatives S1 S2 p .4 .6 Option 1 10,000 30,000 Option 2 5,000 45,000 Option 3 -4,000 60,000 A) 5,000 B) 21,000 C) 25,000 D) 29,000 E) 45,000

Q: Direct labor and indirect labor are recorded, respectively, to: A.Factory Overhead and Work in Process Inventory. B.Work in Process Inventory and Finished Goods Inventory. C.Finished Goods Inventory and Work in Process Inventory. D.Work in Process Inventory and Factory Overhead. E.Cost of Goods Sold and Finished Goods Inventory.

Q: What is the EMV for Option 1 in the following decision table? States of Nature Alternatives S1 S2 p .4 .6 Option 1 10,000 30,000 Option 2 5,000 45,000 Option 3 -4,000 60,000 A) 10,000 B) 18,000 C) 20,000 D) 22,000 E) 30,000

Q: What is the EMV for Option 2 in the following decision table? States of Nature Alternatives S1 S2 p .3 .7 Option 1 15,000 20,000 Option 2 10,000 30,000 A) 10,000 B) 16,000 C) 20,000 D) 24,000 E) 30,000