Fil Enterprises, distributor of compact disks (CDs), is developing its budgeted cost of goods sold for 2013. Fil has developed the following 400 Chapter 12 range of sales estimates and associated probabilities for the ve Probability 18. Sales Estimate P 60,000 85,000 100,000 25% 40 35 Fil's cost of goods sold averages 80% of sales. What is the expected value of Fil's 2013 budgeted cost of goods sold? P85,000 P68,000 P67,20 с. a. d. (CMA, Adapted) b. P84,000 19. The modeling technique to be used for situations involving a seguencs of events with several possible outcomes associated with each event is queuing theory. dynamic programming. d. decision tree analysis. (CMA, Adapted) с. the critical path method. a. b. Which of the following statements does not apply to decision tree analysis? The sum of the probabilities of the events is less than one. All of the events are mutually exclusive. All of the events are included in the decision. The branches emanate from a node from left to right. 20. a. b. c. d. (CMA, Adapted) The modeling technique to be employed in a situation involving a sequence of events with several possible outcomes associated with each event is network analysis. decision tree analysis. 21. a. с. Monte Carlo simulation. b. d. linear programming. (CMA, Adapted) Questions 22 through 24 are based on the following information: A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000. If the stand sells coffee and the weather is hot, it will make P1,900; if the weather is cold, the profit will be P2,000. The probability of cold weather on a given day at this time is 60%0. 22. The expected payoff for selling coffee is
Fil Enterprises, distributor of compact disks (CDs), is developing its budgeted cost of goods sold for 2013. Fil has developed the following 400 Chapter 12 range of sales estimates and associated probabilities for the ve Probability 18. Sales Estimate P 60,000 85,000 100,000 25% 40 35 Fil's cost of goods sold averages 80% of sales. What is the expected value of Fil's 2013 budgeted cost of goods sold? P85,000 P68,000 P67,20 с. a. d. (CMA, Adapted) b. P84,000 19. The modeling technique to be used for situations involving a seguencs of events with several possible outcomes associated with each event is queuing theory. dynamic programming. d. decision tree analysis. (CMA, Adapted) с. the critical path method. a. b. Which of the following statements does not apply to decision tree analysis? The sum of the probabilities of the events is less than one. All of the events are mutually exclusive. All of the events are included in the decision. The branches emanate from a node from left to right. 20. a. b. c. d. (CMA, Adapted) The modeling technique to be employed in a situation involving a sequence of events with several possible outcomes associated with each event is network analysis. decision tree analysis. 21. a. с. Monte Carlo simulation. b. d. linear programming. (CMA, Adapted) Questions 22 through 24 are based on the following information: A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000. If the stand sells coffee and the weather is hot, it will make P1,900; if the weather is cold, the profit will be P2,000. The probability of cold weather on a given day at this time is 60%0. 22. The expected payoff for selling coffee is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Chapter 12
400
range of sales estimates and associated probabilities for the ve
Probability
18.
Sales Estimate
P 60,000
85,000
100,000
25%
40
35
value of Fil's 2013 budgeted cost of goods sold?
P85,000
P84,000
P68,000
P67,20
с.
(CMA, Adapted)
a.
d.
b.
19.
The modeling technique to be used for situations involving a seguencs
of events with several possible outcomes associated with each event is
queuing theory.
с.
the critical path method.
а.
b.
dynamic programming. d. decision tree analysis. (CMA, Adapted)
Which of the following statements does not apply to decision tree
analysis?
The sum of the probabilities of the events is less than one.
All of the events are mutually exclusive.
All of the events are included in the decision.
The branches emanate from a node from left to right.
20.
a.
b.
с.
d.
(CMA, Adapted)
The modeling technique to be employed in a situation involving a
sequence of events with several possible outcomes associated with each
event is
21.
network analysis.
a.
с.
Monte Carlo simulation.
b.
decision tree analysis.
d.
linear programming. (CMA, Adapted)
Questions 22 through 24 are based on the following information:
A beverage stand can sell either soft drinks or coffee on any given day. If the
stand sells soft drinks and the weather is hot, it will make P2,500; if the
weather is cold, the profit will be P1,000. If the stand sells coffee and the
weather is hot, it will make P1,900; if the weather is cold, the profit will be
P2,000. The probability of cold weather on a given day at this time is 60%0.
22.
The expected payoff for selling coffee is
P1,360.
b. P2,200.
a.
с.
P3,900.
d. P1,960. (CMA, Adapted)
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