For a purchasing decision that must be made on Thursday, Fred estimates on Monday that his needs
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For a purchasing decision that must be made on Thursday, Fred estimates on Monday that his needs will be 11 units. On Friday, Fred knows with certainty (by counting inventory on hand) that he needs 15 units. For decision-making purposes:
A. Fred's Monday estimate of 11 units is more valuable B. Fred's Friday information, knowing with certainty that 15 units are needed, is more valuable C. the company should never make decisions based upon estimates D. both B and C are correct
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Cost Accounting An Introduction To Cost Management Systems
ISBN: 9780324015829
1st Edition
Authors: Philip Jagolinzer
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