Which of the Following Statements Is False

question 82

Multiple Choice

Which of the following statements is false?

• A) The profitability index measures the value created in terms of NPV per unit of resource consumed.
• B) The profitability index is the ratio of value created to resources consumed.
• C) The profitability index can can be easily adapted for determining the correct investment decisions when multiple resource constraints exist.
• D) The profitability index measures the "bang for your buck."

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Definitions:

Supply Chain Functions

Key activities involved in managing the flow of goods, information, and finances from suppliers to consumers, including procurement, manufacturing, distribution, and logistics.

Functional Cost

Relates to expenses directly tied to specific functions or departments within a business, such as manufacturing or marketing.

Supply Chain Uncertainty

The unpredictability in any aspect of the supply chain, including supply, demand, prices, and lead times, which affects planning and operations.

Customer Analytics

The process of analyzing customer data to understand behavior, preferences, and trends to improve business decisions.