The Payback Period Rule

question 37

Multiple Choice

The payback period rule

• A)varies the cut-off point with the interest rate.
• B)determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
• C)requires an arbitrary choice of a cut-off point.
• D)varies the cut-off point with the interest rate and requires an arbitrary choice of a cut-off point.

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Definitions:

Point System Job Evaluation

A quantitative method of determining the value of a job in relation to other jobs within an organization by scoring it on various factors.

Allocating Points

The process of distributing or assigning points based on certain criteria, often used in scoring systems, evaluations, or resource management.

Individual Incentive Plan

Compensation strategy designed to reward employees based on their individual performance achievements.

Piecework

A payment method based on the amount of work completed rather than the time taken, frequently used in manufacturing and agriculture.