Which of the Following Types of Decisions Involves Deciding Whether

question 68

Multiple Choice

Which of the following types of decisions involves deciding whether to accept or reject an order that is outside the scope of normal sales?

• A)Special-order
• B)Make-or-buy
• C)Continue or discontinue
• D)Sell-or-process further

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Definitions:

Net Present Value

A method of evaluating investment opportunities that calculates the difference between the present value of cash inflows and outflows over a period of time.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Salvage Value

The projected value of an asset for sale at the conclusion of its operational lifespan.