The Process of Evaluating an Organization's Investment in Long-Term Assets

question 92

Multiple Choice

The process of evaluating an organization's investment in long-term assets is called

• A)activity-based evaluation.
• B)capital budgeting.
• C)investment control.
• D)A preference decision.

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Definitions:

Non-Value-Added Activities

Tasks or processes that consume resources but do not add direct value or enhance the product or service from the customer's perspective.

Work in Process

Inventory that includes items currently being produced and not yet completed, representing a stage between raw materials and finished goods.

Raw Material

The basic material from which a product is made, often processed in manufacturing to create components or finished goods.

Bottlenecks

Constraints or impediments in a system that significantly slow down or halt the overall process flow.