Which of the Following Techniques Is Used to Evaluate the Desirability

question 9

Multiple Choice

Which of the following techniques is used to evaluate the desirability of an activity in which its benefits cannot be measured in dollars?

• A) Cost benefit analysis
• B) Cost effectiveness analysis
• C) Program evaluation
• D) Capital budgeting

---

Definitions:

Direct Materials

Raw materials directly used in the manufacturing process of a product, easily traceable and integral to the finished good.

Direct Labor

The wages and other costs for labor that is directly involved in the manufacturing or production of goods or services.

Operating Income

A measure of a company's profit excluding one-off items and costs not directly related to its core operations, such as interest and taxes.

Net Cash Inflows

The total amount of cash received minus cash outflows over a specific period, indicative of financial health.