Which of the Following Best Describes the Role of Benefit-Cost

question 49

Multiple Choice

Which of the following best describes the role of benefit-cost analysis in the capital budgeting process by governments and not-for-profit entities?

• A)It may be used to enhance the objectivity of decision-making.
• B)Because all costs and all benefits can be quantified, it removes subjectivity from the decision process.
• C)It eliminates the role of value judgments in the decision-making process.
• D)It ensures that decisions about capital asset acquisition will be consistent with organizational goals and objectives.

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Definitions:

Grading

The process of categorizing products based on quality, size, or other characteristics to meet specified standards.

Logistical Function

Logistical function involves planning, implementing, and controlling the efficient and effective forward and reverse flow and storage of goods, services, and related information from point of origin to point of consumption.

Hardware Store

A retail establishment selling tools, building materials, and supplies for home improvements, repairs, and maintenance.

Refinishing Table

The process of restoring the surface of a table to its original or new condition through sanding, painting, staining, or applying a protective coating.