Which of the Following Statements Is True of Lead Time

question 82

Multiple Choice

Which of the following statements is true of lead time?

• A)Total lead time can be divided into acceptable and non-acceptable lead time.
• B)Lead time is a measure of time that elapses between the sale of a product and delivery to the customer.
• C)Reducing nonvalue-added lead time reduces costs and improves the speed of production.
• D)Reducing nonacceptable lead time improves the speed of production,but will not affect product cost.

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Definitions:

WACC

A firm's Weighted Average Cost of Capital is derived by calculating the cost of capital for each capital category and then weighting these costs according to each category's presence in the total capital structure.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cash Flow

The overall movement of capital entering and leaving a firm, which directly affects its solvency.

IRR

The Internal Rate of Return is a financial measure utilized in the evaluation of capital investments to determine their expected profitability.