All of the Following Are Weaknesses of the Payback Period

question 162

Multiple Choice

All of the following are weaknesses of the payback period EXCEPT

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

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Definitions:

Competitive Assessment

The evaluation of competitors in terms of their strengths, weaknesses, opportunities, and threats to identify one's own competitive advantage.

Customer Wants

The desires or needs of consumers that motivate them to purchase products or services.

Product Managers

Product Managers are responsible for guiding the success of a product and leading the cross-functional team that is responsible for improving it.

Japanese Method

A technique or approach originating from Japan, often associated with manufacturing and management practices like lean manufacturing or the Toyota Production System, aimed at improving efficiency and quality.