The Analytic Hierarchy Process Is Being Employed in a Project

question 32

Multiple Choice

The Analytic Hierarchy Process is being employed in a project selection decision.One major criteria,cost,receives a weighting value of 40%,which is split into short term (50%) ,intermediate term (30%) ,and long term (20%) .Which of these statements is BEST?

• A)Short term,intermediate term,and long term must receive overall weightings that total 100%.
• B)There must be at least one other major criteria that has 40% weighting.
• C)Intermediate-term cost receives a weighting of 12%.
• D)Long-term cost receives an overall weighting of 80%.

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Definitions:

Variable Selling

Costs associated with selling a product that vary with the level of sales activity, such as commissions or shipping fees.

Administrative Expenses

These are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production, or sales.

Variable Costing

An approach to costing that accounts for just the variable costs of production, including direct materials, direct labor, and variable manufacturing overhead, in the calculation of product costs.

Product Unit Cost

The total cost associated with producing a single unit of a product, encompassing both direct materials and direct labor costs.