1. Which of the following is not a critical success factor in the design stage?

A) Improved ease of manufacture.

B) Reduced product environmental impact.

C) Improved customer satisfaction.

D) Reduced time to market.

E) Process planning and design.

2. If a firm sets an initial high price for a product followed by lower prices in the future, what cost life cycle technique is it using?

A) Penetration.

B) Skimming.

C) Division.

D) Maturity.

E) Revenue maximization.

3. What are the two principal types of investment projects?

A) Short-term and long-term projects.

B) Profitable and unprofitable projects.

C) Small and large projects.

D) Independent and dependent projects.

E) Revenue-increasing and cost-reducing projects.

4. Which of the following statements regarding capital investment analysis is false?

A) A long-term planning horizon is assumed.

B) Benefits of potential investment projects are conceptually expressed in terms of accounting income (or reduction in costs) rather than after-tax cash flows.

C) Project acceptance decisions are based partially on the extent to which these projects and expenditures support the strategy of the organization.

D) Need to incorporate income-tax effects in the analysis, for both revenues (and gains) as well as expenses (and losses).

E) Discounted cash flow (DCF) decision models are used by most large organizations.