Find all School-related info fast with the new School-Specific MBA Forum
Learn more about the recent changes... close

It is currently 19 May 2013, 22:33
Customize  |  Hide

Search
Register
New posts
Unanswered

Companies considering new cost-cutting manufacturing

  Question banks Downloads My Bookmarks Reviews  
  Oldest Best Reply
Search for:
 
Print view
First unread post
Author Message
TAGS:
Director
Director
User avatar
Joined: 10 Oct 2005
Posts: 533
Location: US
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
Companies considering new cost-cutting manufacturing [#permalink] New post 24 Oct 2005, 20:15
00:00

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
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) The costs of materials required by the new process might not be known with certainty.
(B) In several years interest rates might go down, reducing the interest costs of borrowing money to pay for the investment.
(C) 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.
(D) Competitors that do invest in a new process might reduce their selling prices and thus take market share away from companies that do not.
(E) The period of year chosen for averaging out the cost of the investment might be somewhat longer or shorter, thus affecting the result.
VP
VP
User avatar
Joined: 14 Sep 2005
Posts: 1001
Location: South Korea
Followers: 1

Kudos [?]: 10 [0], given: 0

GMAT Tests User
 [#permalink] New post 24 Oct 2005, 20:37
(D) is the best answer.

< Link deleted >

Sorry for my having posted a link here.
Didn't notice that it is not right to post a link before discussion.
_________________

Auge um Auge, Zahn um Zahn :twisted: !

  [#permalink] 24 Oct 2005, 20:37
    Similar topics Author Replies Last post
Similar
Topics:
 New posts Companies considering new cost-cutting manufacturing nocilis 8 16 Feb 2005, 23:03
New posts Companies considering new cost-cutting manufacturing nakib77 4 30 Oct 2005, 13:33
New posts Companies considering new cost-cutting manufacturing ps_dahiya 7 21 Nov 2005, 22:49
New posts 1) Companies considering new cost-cutting manufacturing Sita 5 13 Jul 2007, 23:19
New posts Companies considering new cost-cutting manufacturing rochak 8 16 Mar 2011, 06:08
Display posts from previous: Sort by

Companies considering new cost-cutting manufacturing

  Question banks Downloads My Bookmarks Reviews  
Print view
First unread post

Moderators: metallicafan, rajeevrks27, souvik101990, PTK, MacFauz, noboru, kissthegmat, carcass, willigetmylifeback, mikemcgarry, doe007, Vercules, Legendaddy, tuanquang269, RaviChandra, Marcab, Narenn

Search for:


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.

Main navigation

GMAT Resources

Partners

MBA Resources

www.gmac.com|www.mba.com