Qualitative Factors Can Be Difficult to Identify Because

question 17

Multiple Choice

Qualitative factors can be difficult to identify because:

• A) They are not usually relevant in nonroutine operating decisions
• B) They are usually unimportant
• C) No set formula assures managers they have considered the important issues
• D) They are typically the same as sunk costs

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Definitions:

Annual Rate

The interest rate for a period of one year, often used as a benchmark for savings or loan interest calculations.

Investment

The process of distributing funds or other resources with the goal of earning returns or profits.

Interest

The cost of borrowing money or the profit from lending money, usually expressed as a percentage rate over the period of one year.

Months

Units of time used in calendars that approximate the period required for the moon to complete its orbit around the Earth, commonly divided into 12 periods in a year.