The Capital Budgeting Method(s) That Is(are) Most Likely to Provide

question 64

Multiple Choice

The capital budgeting method(s) that is(are) most likely to provide consistency between data for capital budgeting and data for subsequent performance evaluation is(are) the:

• A) Payback period method.
• B) Discounted cash flow (DCF) methods.
• C) Book (i.e., accounting) rate of return method.
• D) Discounted payback period method.
• E) Cash-flow proxy method.

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Definitions:

Seven Wastes

Overproduction; queues; transportation; inventory; motion; overprocessing; defective product.

Overproduction

The manufacturing or production of goods in excess of demand, leading to inefficiencies and potential waste of resources.

Transportation

The movement of goods, people, or animals from one location to another using various modes including air, rail, road, water, or pipeline.

Manufacturing Cycle Time

The total time required from the start of production to the completion of the final product.