Use the Table for the Question(s)below

question 22

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The profitability index for project B is closest to:

• A)23.34.
• B)12.64.
• C)0.17.
• D)0.12.

Comprehend the role of fixed and variable costs in budgeting and financial performance evaluation.

Understand the process and importance of comparing actual costs and revenues to budgeted amounts.

Grasp the significance of activity levels in the management of costs and the preparation of flexible budgets.

Interpret the implications of variances on material cost and efficiency.

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Definitions:

Round-Trip Ticket

A ticket that allows someone to travel to a destination and return to the original departure point, typically within a specified period.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.

Monetary Cost

The amount of money expended to produce or acquire goods or services.

Opportunity Cost

The drawback of failing to select the next best possible choice during the decision-making process.