Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A)Sales will ultimately decline as the product nears obsolescence or faces increased competition.
• B)Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it,the prior investment will be wasted.
• C)With straight-line depreciation the asset's cost is divided equally over its life.
• D)A project's unlevered net income is equal to its incremental revenues less costs and depreciation,evaluated on a pre-tax basis.

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Definitions:

Direct Labor

The labor costs directly attributed to the production of goods or services, such as wages paid to assembly line workers.

Budgeting

The process of creating a plan to spend your money, allocating financial resources to various activities, departments, or items over a particular period.

Spending Variance

The difference between the actual amount spent on something and the amount that was planned to be spent, often used in budgeting and financial analysis.

Medical Supplies

Items and equipment used in medical care, including instruments, dressings, and other medical-related materials.