Which of the Following Is Not a Quantitative Technique Commonly

question 3

Multiple Choice

Which of the following is not a quantitative technique commonly used in capital budgeting decisions?

• A) Net present value
• B) Activity-based budgeting
• C) Internal rate of return
• D) Payback

---

Definitions:

Net Profit Margin Percentage

A financial metric that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total sales.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Gross Margin Percentage

The portion of each dollar of revenue that a company retains as gross profit, calculated as gross profit divided by total revenue.

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.