Which of the Following Capital Budgeting Techniques Is Most Favored

question 19

Multiple Choice

Which of the following capital budgeting techniques is most favored by CFOs?

• A)payback period
• B)internal rate of return
• C)profitability index
• D)P/E ratios

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Definitions:

5Ss

refers to a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke, translating to sort, set in order, shine, standardize, and sustain.

Kanban Size

Refers to the quantity of work or inventory items that a Kanban card or signal controls in a Kanban system, aiming to optimize workflow and reduce waste in a pull-based production system.

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing or service provision.

Carrying Cost

Expenses associated with holding or storing inventory over a period, including warehousing, insurance, depreciation, and opportunity costs.