It assists in understanding which risks need treatment and prioritisation

It is used to assess customer feedback

It evaluates employee satisfaction

It evaluates the company's sales figures

Feedstock or raw material costs

Energy costs

The cost of the organization’s insurance policies

The cost of new plant and equipment

Employee salary costs

The logistics of delivering the gas compressor to site

The payment terms of the contract

When ownership of the compressor changes and hence when it needs to be insured.

What customs and import duties may be applicable to the compressor.

All of the above

Engineers rarely get involved in capital budgeting issues.

Accountants usually draft the capital budget because they know how much money the organization has available.

Engineers are usually intimately involved in drafting the capital budget because they design and cost new capital projects.

Capital budgets are not important as most organizations can borrow more money than they need.

If the capital budget is tight, it is normal to buy items out of spare operating budget cash.

Increasing inventory does not affect working capital.

The logistics of feedstock delivery (e.g., tanker ship or pipeline) affects the amount of feedstock inventory that must be kept to ensure reliable production.

The material within the production plant is not counted as inventory because it is not finished.

For products that have limited lifespan, high inventory levels are cost effective as it ensures reliability of supply.

For most organizations it I not important to manage inventory levels.