Which of the Following Statements Is Not Consistent with the Typical

question 125

Multiple Choice

Which of the following statements is not consistent with the typical objectives of developing aggregate plants?

• A) Improving on-time delivery to maximize customer service.
• B) Minimize changes in production rates to avoid potential difficulties in coordinating with suppliers.
• C) Strive for low utilization of expensive production assets to maintain a large capacity cushion
• D) Minimize the accumulation of inventory.

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Definitions:

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Cash Inflows

The total amount of money being transferred into a business, usually from operating, investing, and financing activities.

Discount Rate

The rate applied within discounted cash flow analysis for assessing the present worth of forthcoming cash flows.

Net Present Value

A method of evaluating investments by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.