36. An objection to the benefit-cost ratio method of comparing alternate projects is: not all benefits and costs can be accurately quantified. O the results do not give a relative ranking of projects. the costs used are only those charged to the direct beneficiary. O secondary benefits are not included.

36. An objection to the benefit-cost ratio method of comparing alternate projects is: not all benefits and costs can be accurately quantified. O the results do not give a relative ranking of projects. the costs used are only those charged to the direct beneficiary. O secondary benefits are not included.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following describes one aspect of incremental analysis? O Both costs and revenues that stay the same between alternate courses of action will be analyzed. O Only costs relating to the decisions at hand are analyzed. O All costs and revenues, regardless if they stay the same or differ between alternate courses of action, will be analyzed. O Both costs and revenues that differ between alternate courses of action will be analyzed.
Is one that can be avoided or eliminated by making a decision not to invest, or to cease investing. Because these costs may be different among options, they will be relevant costs that will need to be addressed if the costs are different among the options. Select the correct response: Sunk Costs Committed Cost Common Cost Avoidable Cost Fixed Cost Imputed Cost
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Why do proponents of LIFO argue that it provides a better match of revenue and expenses? Is there any situation that it would it not provide a better match?
Consider the Comparing Unequal-Service-Life Problems?
Dis benefits are the future costs of a project that are paid out of its benefits Select one: True False 16
Explain two (2) disadvantages associated with the use ratio analysis.
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43) Sunk costs are all of the following except: A) Unavoidable costs B) Avoidable costs C) Irrelevant costs D) Historical costs
a. Explain why the IRR may contradict the ranking of NPV and therfore not recmmeneded to use when choosing among mutually exclusive projects.\ (5 lines) b. Give two possible examples of such projects. (choose realistic projects, or actual projects you know of) Exaplain your choice?
Which statement is correct regarding IFRS?(a) An advantage of the nature-of-expense method is that it is simple to apply because allocations of expense to different functions are not necessary.(b) The function-of-expense approach never requires arbitrary allocations.(c) An advantage of the function-of-expense method is that allocation of costs to the varying functions is rarely arbitrary.(d) IFRS requires use of the nature-of-expense approach.