The ranking approach involves the ranking of capital expenditure projects on the basis of some predetermined measure such as the rate of return.

Question

Quizplus · Accepted Answer

The statement is true. The ranking approach involves using a predetermined measure, such as the rate of return or the payback period, to rank capital expenditure projects against each other and determine which ones are the most beneficial to pursue. This helps companies prioritize their investments and allocate resources accordingly.

The Ranking Approach Involves the Ranking of Capital Expenditure Projects