17. Companies considering new cost-cutting manufacturing processes often compare the projected results of making the investment against the alternative of not making the investment with costs, selling prices, and share of market remaining constant.
Which of the following, assuming that each is a realistic possibility, constitutes the most serious disadvantage for companies of using the method above for evaluating the financial benefit of new manufacturing processes?
(A) The costs of materials required by the new process might not be known with certainty.
(B) In several years interest rates might go down, reducing the interest costs of borrowing money to pay for the investment.
(C) Some cost-cutting processes might require such expensive investments that there would be no net gain for many years, until the investment was paid for by savings in the manufacturing process.
(D) Competitors that do invest in a new process might reduce their selling prices and thus take market share away from companies that do not.(D)
(E) The period of year chosen for averaging out the cost of the investment might be somewhat longer or shorter, thus affecting the result.
Simply put, A and E are irrelevant or out of scope. Cost of material or period is not within the reasoning of the argument. And we do not have additonal information to evaluate assertions involving the two factors. Therefore neither is correct.
The question says that the method holds the few factors constant. Then D says one of those factors is subject to change, thus refuting the argument.
Please use normal font next time. It is kinda dazzling.
Simply put, A and E are irrelevant or out of scope. Cost of material or period is not within the reasoning of the argument. And we do not have additonal information to evaluate assertions involving the two factors. Therefore neither is correct.
The question says that the method holds the few factors constant. Then D says one of those factors is subject to change, thus refuting the argument.
Please use normal font next time. It is kinda dazzling.
Mindfree兄,有一事不是十分清楚,无关词(无关选项)排除法我始终不敢洋洋洒洒的用。比如这道题的A选项,因为其涉及的cost of materails的确是成本因素的一个部分。虽然在此题中A综合其后边的话,是无关选项。但是如果A改成cost of materials is deem to change. (or there is no way that cost of material can be constant),这样一来也构成了对题干的一个削弱,这样,我就再看题的时候不敢随便排除了。我的想法正确吗?还是我又误入歧途了。谢谢!
Mindfree兄,有一事不是十分清楚,无关词(无关选项)排除法我始终不敢洋洋洒洒的用。比如这道题的A选项,因为其涉及的cost of materails的确是成本因素的一个部分。虽然在此题中A综合其后边的话,是无关选项。但是如果A改成cost of materials is deem to change. (or there is no way that cost of material can be constant),这样一来也构成了对题干的一个削弱,这样,我就再看题的时候不敢随便排除了。我的想法正确吗?还是我又误入歧途了。谢谢!
A 说改革以后的cost无法确定,这其实不要紧。只要作为基准的改革前的cost不变就可以了。所以你该写以后的cost change要看在说哪个cost,改革后的cost还是“基准cost”