Which phase subjects a capital expenditure proposal to review by all departments capable of passing judgment on the procedural aspects?

Question

Options

• APlanning phase
• BModeling phase
• Ctechnical evaluation phase
• Deconomic criterion phase

• A
  3% (1)
• B
  10% (4)
• C
  82% (32)
• D
  5% (2)

Explanation

Option C is correct because the technical evaluation phase is specifically designed to subject a capital expenditure proposal to scrutiny from all relevant departments that can assess its procedural, operational, and technical soundness - engineering, procurement, operations, and others each weigh in on whether the proposal is executable and compliant with established procedures.

Why the distractors are wrong:

• A (Planning): The planning phase is where the need or idea is first identified and the proposal is drafted - it precedes any formal departmental review.
• B (Modeling): A modeling phase focuses on building simulations or financial/operational models, not cross-departmental procedural review.
• D (Economic criterion): This phase evaluates financial metrics like NPV, IRR, or payback period - it's about money, not procedural assessment.

Memory tip: Think "Technical = Team review" - the technical evaluation phase is where the team of departments checks whether the proposal actually works procedurally before anyone commits resources.

No community discussion yet for this question.