What decision would be made under minimax regret?
An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below.
Economic Condition
Poor Average Good Excellent
Investment (S1) (S2) (S3) (S4)
A 50 75 20 30
B 80 15 40 50
C -100 300 -50 10
D 25 25 25 25
Answer: Compare 225, 285, 180, and 275. Select investment C.
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All of the following statements are correct about controllable costs except
a) all costs are controllable at some level of responsibility within a company. b) fewer costs are controllable as one moves up to each higher level of managerial responsibility. c) all costs are controllable by top management. d) costs incurred directly by a level of responsibility are controllable at that level.
Allowing only designated personnel to handle cash receipts is an example of
A. establishment of responsibility B. independent internal verification C. segregation of duties D. documentation procedures