Match Each Definition That Follows with the Term (A-E) It

question 106

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Also referred to as capital budgeting

• A)Capital investment analysis
• B)Time value of money concept
• C)Net present value method
• D)Average rate of return
• E)Cash payback period

---

Definitions:

Economies of Scale

Financial benefits gained by companies thanks to their large scale of operation, which typically leads to a reduction in the cost per unit of output as the scale increases.

Product Departmentation

A method of organizing a company based on the different products manufactured or services provided.

Functional Departmentation

The process of organizing a business into distinct departments, each responsible for a specific function or area, such as marketing or finance.

Centralized

The concentration of control, authority, or decision-making power within a singular or limited locale or organization hierarchy.