The two cardinal rules that financial analysts should follow to avoid capital budgeting errors are: (1) in the NPV equation, the numerator should use income calculated in accordance with generally accepted accounting principles, and (2) all incremental cash flows should be considered when making accept/reject decisions.
Answer the following statement true (T) or false (F)
False
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The weighted average method combines prior-period work and cost with current-period work and costs
Indicate whether the statement is true or false
JIT concepts
a. can be effectively implemented in organizations that are only partially automated. b. are only appropriate for use with CIM systems. c. involve shifting from a capital-intensive to a labor-intensive process. d. require full computerization of the JIT manufacturing process.
One of the reasons for the recent, rapid growth of direct marketing in American society is the
A. increase in the number of hours individuals spend watching television. B. increased use of consumer credit cards. C. fact that the United States has moved from an industrialized nation to a service nation. D. nonproliferation of cellular phones. E. development of four-color printing presses.
When evaluating variances, exceptions can be expressed as a percentage of a budgeted amount or a dollar amount
Indicate whether the statement is true or false