Scoring models are most often used to overcome this disadvantage of profitability models.
A)The inability to account for the time value of money.
B)The inability to account for project results beyond the payback period.
C)The inability to account for multiple decision criteria.
D)The inability to account for cash flow.

Question

Quizplus · Accepted Answer

Scoring models allow for the consideration of multiple decision criteria, which profitability models may not be able to accommodate. While profitability models may only focus on the financial return of a project, scoring models can weigh various factors such as environmental impact, social responsibility, and customer satisfaction. This makes them a more comprehensive tool for decision-making.

Scoring Models Are Most Often Used to Overcome This Disadvantage