In Some Labor-Intensive Industries,a Business Can Achieve a Cost Advantage,at

question 52

True/False

In some labor-intensive industries,a business can achieve a cost advantage,at least in the short term,by gaining access to inexpensive labor.

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Definitions:

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Net Cash Flow

The sum of all cash receipts minus all cash payments over a period, reflecting the company's liquidity position.

Payback Period Method

A capital budgeting technique that calculates the time needed for an investment to generate cash flows sufficient to recover the initial investment cost.

Capital Budgeting Decisions

The process of planning and evaluating investments in long-term assets, considering their potential to generate future profits.