Which of the following methods is potentially useful for helping an organization align its capital expenditures with its strategy?
A) Multiproduct cost-volume-profit (CVP) analysis.
B) The analytic hierarchy process (AHP).
C) Multiple regression and correlation analysis.
D) Linear optimization (that is, linear programming models).
E) Six-Sigma techniques.

Question

Quizplus · Accepted Answer

The analytic hierarchy process (AHP) is a decision-making tool that can be used to help prioritize and align capital expenditures with an organization's strategy. It involves breaking down complex decisions into smaller, more manageable parts, and then comparing and weighting each part based on its importance to the overall objective. This can help organizations make more informed and strategic capital investment decisions.

Which of the Following Methods Is Potentially Useful for Helping