The Capital Budgeting Process Evaluates Proposals Such as Replacing Existing

question 49

True/False

The capital budgeting process evaluates proposals such as replacing existing machinery with more advanced models to reduce cost and improve the efficiency of current operations.

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Definitions:

Process Re-Engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, service, and speed.

Systems Bottlenecks

refer to points of congestion in a system where the flow of processes is impaired, causing delays and inefficiencies.

Productivity

A measure of how efficiently outputs (goods and services) are produced from inputs (labor, capital, materials).

Global Financial Crisis

Was a consequence of sub‐prime mortgage defaults in the United States in 2008 and culminated in a worldwide recession.