Managers should apply plausibility and reliability to obtain accurate and useful cost functions.

Question

Quizplus · Accepted Answer

Plausibility and reliability are both essential in accurately determining cost functions. Plausibility refers to the reasonableness of the assumptions and inputs used to calculate the cost function, while reliability refers to the accuracy and consistency of the data used in the analysis. By applying these principles, managers can obtain cost functions that are both accurate and useful for decision-making.

Managers Should Apply Plausibility and Reliability to Obtain Accurate and Useful