For a project selected using nonnumeric models,identify the true statement regarding relative priorities for project selection.
A)Operating necessity projects have priority over competitive necessity projects.
B)Competitive necessity projects have priority over operating necessity projects.
C)Operating necessity and competitive necessity projects have equal priority.
D)Product line extension projects have priority over operating necessity projects.

Question

Quizplus · Accepted Answer

Operating necessity projects are essential for the organization's day-to-day functioning and maintenance of its current operations. Therefore, projects classified as operating necessities should have priority over competitive necessity projects. Competitive necessity projects are projects that help an organization remain competitive in the market by developing new products, processes, or technologies. While important, they are not essential for the organization's survival in the short term.

For a Project Selected Using Nonnumeric Models,identify the True Statement