Which of the following is not one of the more common strategic benefits provided by capital investment projects?
A) Being able to deliver a product that competitors cannot (i.e., product differentiation).
B) Improving product quality.
C) Reducing manufacturing cycle time.
D) Reducing the number of short-term (i.e., operational) decisions that management must make.
E) Providing significant cost reductions, in terms of production and/or marketing costs.

Question

Quizplus · Accepted Answer

While capital investment projects can provide strategic benefits such as product differentiation, improved quality, reduced manufacturing cycle time, and cost reductions, they do not necessarily reduce the number of short-term operational decisions that management must make. This is because operational decisions are ongoing and have to be made regardless of capital investments.

Which of the Following Is Not One of the More