When using a benefit-cost ratio (B/C) analysis to evaluate multiple alternatives, which of the following approaches is acceptable? a. Ranking approach only b. Incremental approach only c. Either incremental or ranking d. Neither incremental nor ranking

When using a benefit-cost ratio (B/C) analysis to evaluate multiple alternatives, which of the following approaches is acceptable? a. Ranking approach only b. Incremental approach only c. Either incremental or ranking d. Neither incremental nor ranking

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 1P

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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When performing a benefit-cost analysis for multiple alternatives, calculate each B/C ratio, rank them, then pick the highest one. True or False?
Discuss the FOUR basic steps in benefit-cost analysis, which aspect of benefit-cost analysis would you consider to be the most controversial? Give reasons for your answer.
Which of the following pricing offers the right combination of good quality and service at a fair price? Question 1 options: A) Cost-based pricing B) Value-added pricing C) Good-value pricing D) None of the above
How do you calculate Benefit Cost Ratio (BCR). Mention the decision making process of BCR.
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Which of the following best describes an "opportunity cost"? Group of answer choices costs that were incurred in the past and cannot be changed The distribution of all products to be sold Expected future costs that differs among alternatives Benefits foregone by not choosing an alternative course of action
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