Which of the Following Statements Is FALSE

question 72

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 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:

Personal Sources

Individuals or personal contacts from whom one can obtain information, recommendations, or advice, especially relevant in purchase decisions or when seeking trustworthy data.

Consumer Value Perceptions

How consumers view the worth of a product or service in relation to its price, quality, and utility.

Alternative Evaluation

The stage in the consumer decision-making process where different product and service options are assessed against a set of criteria.

Suggests Criteria

The act of proposing specific standards or benchmarks that can be used to evaluate or judge something.