A Writer Estimates It Will Take Three Months to Generate

question 25

Multiple Choice

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

• A)Objective and accurate.
• B)Subjective and accurate.
• C)Objective and inaccurate.
• D)Subjective and inaccurate.

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.

Straight-Line Depreciation

A method of allocating an asset's cost evenly throughout its useful life.

Salvage Value

The estimated residual value of an asset after its useful life is over and it has been fully depreciated.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.