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
D
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Discount Sales Company uses a standard cost system
Variable overhead costs are allocated based on direct labor hours. In the first quarter, Discount Sales had a favorable cost variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance? A) The actual number of direct labor hours was lower than the budgeted hours. B) The actual variable overhead costs were higher than the budgeted costs. C) The actual variable overhead costs were lower than the budgeted costs. D) The actual number of direct labor hours was higher than the budgeted hours.
In urban areas, Metropolitan Statistical Areas (MSAs) ________
A) are defined by local communities B) have a population of at least 50,000 C) comprise counties containing a central city D) have a population as low as 4,000 E) B and C