Which of the following statements about decision-making is true?
A) Risk should not be taken into account.
B) Objectives should be quantitative and not qualitative.
C) Opportunity cost should be considered.
D) Sunk costs should usually be taken into account.
C
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What is the means test? Provide an example of how it would be applied.
What will be an ideal response?
Oreo Company has current assets of $20,000, current liabilities of $8,000, and long-term liabilities of $3,000. Oreo wants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?
a. $ 4,000 b. $ 8,000 c. $ 10,000 d. $ 12,000
Which of the following represents a group composed of key officers of a corporation and outside members responsible for the general oversight of the affairs of the company?
a. Board of Directors b. Internal Audit Staff c. External Auditors d. Audit Committee
The Sarbanes-Oxley Act requires a company to guarantee that its financial statements are 100 percent accurate
Indicate whether the statement is true or false