Increasing the Cost of a Project Can Reduce the Time

question 41

Multiple Choice

Increasing the cost of a project can reduce the time required to complete the project up to a certain point, beyond which, the time required would increase due to ________.

• A) economies of scale
• B) diseconomies of scale
• C) economies of scope
• D) diseconomies of scope

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Definitions:

Anticipated Amount

The anticipated amount is an estimate of funds expected to be received or paid in the future.

External Financing

Funds raised from sources outside the company, including banks, investors, or public markets.

Operating Capacity

The maximum output or the level of service that a company can achieve with its current resources under normal conditions.

Dividend Payout Ratio

A financial metric that shows what percentage of a company's earnings are distributed to shareholders as dividends.