Which of the Following Is an Advantage of the Postponement

question 80

Multiple Choice

Which of the following is an advantage of the postponement technique?

• A) reduction in automation
• B) early customization of the product
• C) better quality of the product
• D) reduction in training costs
• E) reduction in inventory investment

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its investors and creditors.

Financial Decision Making

The process of making choices related to investments, budgeting, and spending strategies to optimize financial goals.

Top Managers

Executives at the highest level of organizational management who are responsible for the overall direction and success of the company.

Economic Value Added

A measure of a company's financial performance that shows the net profit earned above the cost of capital.