WorksheetsDecision Making Techniques
Total questions: 5
Worksheet time: 4mins
Name
Class
Date
1.
What does the Benefit-Cost Ratio (BCR) represent in project evaluation?
a)
The internal rate of return
b)
The net present value of a project
c)
The ratio of total benefits to total costs
2.
If a project has a BCR of 1.5, what does it imply?
a)
The project has a negative net present value
b)
The project returns 1.5 units of benefit per unit cost
c)
The project breaks even
3.
In Decision Tree Analysis, the alternative that has ______ payoff will be selected.
a)
lowest
b)
highest
c)
negative
4.
The Contribution Margin can be increased by ________
a)
Increasing selling price per unit
b)
Decreasing variable cost per unit
c)
Increasing sales quantity
d)
All of these
5.
If the Decision Tree analysis is solely based on the costs, the alternative with ______ total or initial cost will be selected.
a)
lowest
b)
highest
100 %
