The Time Between Placing an Order and Receiving the Item

question 88

Multiple Choice

The time between placing an order and receiving the item is called ______.

• A)lead time
• B)lag time
• C)due date
• D)order time

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Definitions:

Capital Budgeting

The process of allocating resources for significant capital, or investment, expenditures in the long term.

Discount Factor

A multiplier used in discounted cash flow (DCF) analysis to calculate the present value of future cash flows.

Profitability Index

A calculation that compares the present value of future cash flows to the initial investment, used in capital budgeting to determine the desirability of an investment.

Investment Projects

Projects undertaken by individuals or companies involving the investment of capital for future gain.