Several Factors Are Integrated When Determining What Products Should Be

question 105

Multiple Choice

Several factors are integrated when determining what products should be manufactured.The factor which is predominantly driven by influences external to the production business process is

• A) product requirements.
• B) demand for the product.
• C) production resources available to the firm.
• D) Answers A and C are correct.

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Definitions:

NPV

A rephrased definition of Net Present Value, it assesses the worth of future cash flows in today's dollars, subtracting the initial investment.

Yen Cash Flows

Cash inflows and outflows denominated in Japanese Yen, particularly relevant in financial analyses involving Japanese companies or investments.

Inflation Rate

The pace at which the aggregate price level of commodities and services ascends, reducing the value of money.

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to spread the cost of an asset over its useful life.