Answer the following statements true (T) or false (F)
1) The payback method is a screening device and is rarely used as the sole method for deciding whether to invest in an asset.
2) All else being equal, investments with longer payback periods are preferable.
3) Cash inflows from a capital investment arise from an increase in revenues, a decrease in expenses, or both.
4) A major criticism of the payback method is that it focuses only on the time to recover the investment and ignores profitability.
5) Most capital budgeting methods focus on accrual-based income.
1) TRUE
2) FALSE
3) TRUE
4) TRUE
5) FALSE
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Which of the following should not be included in the computation of cost of goods manufactured?
a. Power costs b. Small tools expense c. Total selling costs d. Work in Process Inventory
Negotiators with lower perspective-taking ability negotiated contracts of higher value than did negotiators with higher perspective-taking ability.
Answer the following statement true (T) or false (F)
InLinK Inc incurred a cost of $ 48,000 for material, $20,000 for labor, and $60,000 for factory overhead. There was no beginning or ending work in process. 8,000 units were completed and transferred out. The unit cost for material is:
a. $ 6.0 b. $ 7.5 c. $ 8.0 d. $15.0
A marriage is a legally recognized union between a man and a woman
Indicate whether the statement is true or false