A Disadvantage of the Payback Period Is That It Ignores

question 127

True/False

A disadvantage of the payback period is that it ignores a project's total profitability.

---

Definitions:

Accounts Receivable

Unpaid amounts by customers for products or services they have obtained from a company.

Customer Payments

Funds received from customers as payment for goods or services provided.

Credit Sales

Sales made by a business where payment is deferred to a later date, typically documented by an invoice.

Consulting Services

Professional services provided by experts who offer advice and expertise to businesses and individuals to improve their operations, strategy, and performance.