All of the Following Are Weaknesses of the Payback Period

question 39

Multiple Choice

All of the following are weaknesses of the payback period EXCEPT

• A) a disregard for cash flows after the payback period.
• B) only an implicit consideration of the timing of cash flows.
• C) the difficulty of specifying the appropriate payback period.
• D) it uses cash flows, not accounting profits.

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Definitions:

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization by analyzing their duties, responsibilities, and requirements.

Compensable Factors

Elements of a job that are used to determine appropriate compensation, such as skill level, effort, responsibility, and working conditions.

Skills

Abilities and expertise that individuals possess, which enable them to perform tasks effectively.

Responsibilities

Duties or tasks that an individual or organization is expected to handle or carry out.