Which of the Following Is True Regarding the Profitability Index

question 28

Multiple Choice

Which of the following is true regarding the profitability index?

• A)It does not use the net present value (NPV)to assess benefits.
• B)It is unreliable when used for choosing between different projects.
• C)It is very simple to compute.
• D)Attention must be taken when using it to make sure that all of the constrained resource is used.

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Definitions:

Turnover Problem

A situation in which a company or organization experiences a higher rate of employees leaving than is desired or expected.

Owners Care

The concern and attention to detail that business owners have towards their companies, employees, and customers.

Branding Message

The core theme or statement that represents a brand's values, mission, and identity to its target audience.

Compensation System

Compensation System is the structure and methodology an organization uses to pay its employees, including wages, salaries, bonuses, and benefits.