In Performance Evaluations,it Is Important for Managers to Ensure That

question 67

Multiple Choice

In performance evaluations,it is important for managers to ensure that the method of evaluation does not conflict with the ________ method for making capital-budgeting decisions.

• A)IR
• B)IRR
• C)NPV
• D)AARR
• E)IRRR

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Definitions:

Fixed Input(s)

Factors of production, such as land or machinery, that cannot be adjusted in the short term.

Short Run

A time period during which at least one input is fixed and cannot be adjusted by a firm.

Diseconomies Of Scale

Occur when a company grows so large that the costs per unit increase. It is the opposite of economies of scale.

Long-Run Average Total Cost Curve

A graphical representation showing the lowest possible cost at which any given level of output can be produced in the long run.