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Companies considering new cost-cutting manufacturing processes often compare the projected results of making the investment against the alternative of not making the investment with costs, selling prices, and share of market remaining constant.
Which of the following, assuming that each is a realistic possibility, constitutes the most serious disadvantage for companies of using the method above for evaluating the financial benefit of new manufacturing processes?
A. Some cost-cutting processes might require such expensive investments that there would be no net gain for many years, until the investment was paid for by savings in the manufacturing process.
B. Competitors that do invest in a new process might reduce their selling prices and thus take market share away from companies that do not.
C. In several years interest rates might go down, reducing the interest costs of borrowing money to pay for the investment.
D. The period of year chosen for averaging out the cost of the investment might be somewhat longer or shorter, thus affecting the result.
E. The costs of materials required by the new process might not be known with certainty.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
A. Option C
B. Option B
C. Option A
D. Option D
Answer: A
What is the purpose of a stakeholder analysis?
A. to discuss and agree upon expectations of communication, and primarily agree to a set of values and principles that all stakeholders will follow
B. to position stakeholders according to the level of influence, impact, or enhancement they may provide to the business or its projects
C. to develop the project/business requirements, solution or problem creation, and establish roles and responsibilities
D. to recognize and acknowledge a stakeholder's needs, concerns, wants, authority, common relationships, and interfaces
Answer: D
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