Depreciation Is Not Included in 'Net Present Value' Analysis Because

question 6

Multiple Choice

Depreciation is not included in 'net present value' analysis because it is:

• A)a non-cash item.
• B)an historic cost.
• C)a fixed cost.
• D)a variable cost.

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Definitions:

Lead Time

The time span between the initiation and completion of a process, such as the ordering of goods and their delivery.

Bill of Material

A comprehensive list detailing all the components, materials, and parts required to manufacture a product, including quantities and specifications.

Inventory

An accounting term referring to the goods and materials held by a business for the purpose of resale or production.

Lot-For-Lot

An ordering system where the exact quantity needed for production is ordered, minimizing inventory holding costs.