Which of the Following Is NOT an Advantage That Favors

question 13

Multiple Choice

Which of the following is NOT an advantage that favors the use of weighted scoring models?

• A)Multiple objectives can be considered.
• B)Decision makers are compelled to stick with the decision once it has been made.
• C)The models can easily be adapted to changes in managerial philosophy.
• D)They can help avoid a short-term focus on profitability.

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Definitions:

Markup

An amount added to the cost price of goods to cover overhead and profit.

Absorption Costing

An accounting method that includes all direct costs and an allocated portion of fixed and variable overhead costs in the cost of a product.

Cost-plus Pricing

Setting the price of a product by adding a markup to its variable costs to ensure a margin of profit.

Return on Investment

A financial ratio used to calculate the profitability of an investment, representing the percentage return on the invested amount.