Fabmark Consultancy was asked by a client to evaluate the attractiveness of a potential project to develop a new product line.The data provided by the client included cash flow estimates (in dollars),ranking of marketability by the sales force,and ranking of different product attributes from a potential customer focus group.Which of the following methods would allow Fabmark Consultancy to combine this information and analyze it?
A) Q-sort
B) Data envelopment analysis
C) Attribute ranking
D) Breakeven analysis

Question

Quizplus · Accepted Answer

Data envelopment analysis allows for the incorporation of multiple inputs and outputs to evaluate the relative efficiency of different projects or options. In this case, the cash flow estimates, marketability ranking, and customer attribute ranking can be considered as inputs and outputs to evaluate the potential project's attractiveness. Q-sort and attribute ranking are methods used for subjective evaluation or ranking, while breakeven analysis only considers the financial aspects of a project.

Fabmark Consultancy Was Asked by a Client to Evaluate the Attractiveness