Hannah Perez Keeps Track of Day-To-Day Operational Data to Make

question 33

Multiple Choice

Hannah Perez keeps track of day-to-day operational data to make sure her employer has enough cash to run the business. She will determine if and when the company she works for should open a second distribution centre. Which type of manager is Perez?

• A) accounting
• B) financial
• C) operations
• D) analysis

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Definitions:

Payback Method

This capital budgeting method calculates the time taken for an investment to generate cash flows to recover the initial capital outlay.

Time Value

The notion that money possessed today is more valuable than the same quantity in the future due to its potential to earn income.

Accounting Data

Financial information and records about a company's transactions used for reporting and analysis.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, representing the discount rate at which the net present value of all the cash flows from a project equals zero.