What are the two main sources of uncertainty in cost management?
1 . Lack of identification or understanding of cost drivers. Some portion of a cost is not predictable based on the cost driver.
2 . Unforeseen events that cannot be fully planned for. It is not possible to fully eliminate uncertainty; however management should make every effort to minimize its impact.
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Which of the following would not be characterized as a cost object?
A. A vehicle manufactured by an automobile manufacturer. B. A fast food restaurant located in a Midwest town. C. A regional airline flight from Atlanta to Miami. D. A large city's fire department. E. All of these are examples of cost objects.
The ‘new’ career is associated with which of the following:
a. relational psychological contract b. unbroken psychological contract c. continuous psychological contract d. transactional psychological contract
XYZ is a paint product manufacturer, and one of the plants is experiencing a substantial increase in demand. The future demand for the products could be low, medium, or high, with probabilities estimated to be 25%, 50%, and 30%, respectively. The company wants to determine the financial impact associated with the three decision alternatives under the varying levels of demand. Given the following payoff matrix, compute the EVPI.
a. $9.5 M
b. $10 M
c. $12.4 M
d. $7 M
The values for random variables in a Monte Carlo simulation are
a. selected manually. b. generated randomly from probability distributions. c. taken from forecasting analysis. d. derived secondarily using formulas.