Methods Analysis Focuses On

question 240

Multiple Choice

Methods analysis focuses on:

• A) the design of the machines used to perform a task.
• B) establishing time standards.
• C) reducing the number of skills needed for the completion of a task.
• D) issues such as the movement of individuals or material.
• E) evaluating training programs to see if they are efficient.

Identify the importance of setting a planning horizon and formulating financial policies as part of the strategic financial planning process.

Recognize the limitations of financial planning models and approaches.

Understand the fundamental concepts of operations management.

Analyze productivity and its improvement.

---

Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Regular IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments.

WACC

The Weighted Average Cost of Capital represents the average cost of a company's financing (debt and equity), where each form of capital is weighted according to its proportion in the overall financing mix.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.