A Decision Methodology That Uses Hierarchy of Criteria for Evaluation

question 61

Multiple Choice

A decision methodology that uses hierarchy of criteria for evaluation of alternative decisions is the ______.

• A)analytic hierarchy process (AHP)
• B)optimization method
• C)factor rating method
• D)sourcing algorithm

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Definitions:

Paid-in Capital

Funds raised by a company through the sale of stock or other equity instruments, reflecting the investment made by shareholders.

Retained Earnings

Profits of a company that are not distributed as dividends but are instead reinvested in the business or kept as reserve.

Par Value

The face value of a bond or the stated value of a share of stock, as assigned by the issuing company.

Book Value

The worth of an asset as indicated by its balance sheet account balance, which considers the asset's original cost less any depreciation, amortization, or impairment charges.