Which of the Following Criteria Can Be Included in Scoring

question 27

Multiple Choice

Which of the following criteria can be included in scoring models for selecting projects?

• A) Potential profitability of the project
• B) Potential impact on the firm's competitive position
• C) The organization's ability to market the output of a project
• D) All of the above can be included

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Definitions:

Fixed Expenses

Overheads such as rent, employee salaries, and insurance that do not fluctuate with changes in sales or manufacturing volumes.

Contribution Margin Per Unit

The selling price per unit minus the variable cost per unit, indicating how much contributes to covering fixed costs and profit.

Operating Income

The profit realized from a business's operations after deducting operating expenses such as wages and cost of goods sold.

Contribution Format

A type of income statement that separates fixed and variable costs to highlight the contribution margin.