Which of the Following Statement(s)correctly Describes Aggregate Planning

question 5

Multiple Choice

Which of the following statement(s) correctly describes aggregate planning?

• A) Aggregate planning is concerned with matching supply and demand of output.
• B) Aggregate planning determines not only the output levels planned but also the appropriate resource mix to be used.
• C) The aim of aggregate planning is to set overall output levels for the medium-range future.
• D) All of the above.

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Definitions:

Time Value

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The time it takes for an investment to generate income or revenue equal to its cost, used to assess the feasibility or risk of an investment.

Cash Flows

The net amount of cash being transferred into and out of a business.

Internal Rate

The interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero, used in capital budgeting to measure and compare the profitability of investments.