ABC Engineering Just Bought a New Machine

question 92

Multiple Choice

ABC Engineering just bought a new machine. All of the following are examples of incremental cash flows EXCEPT

• A) interest expense on the loan used to purchase the machine.
• B) installation costs on the new machine.
• C) increase in costs as a result of the new machine.
• D) increases in depreciation expenses as a result of the new machine.

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Definitions:

Maslow's Hierarchy

A psychological health theory based on meeting inherent human needs in order of importance, leading to the ultimate goal of self-actualization.

Physiological Needs

Fundamental human requirements for survival, such as food, water, shelter, and sleep, as identified in Maslow's hierarchy of needs.

Safety Needs

A level in Maslow's hierarchy of needs that entails security, safety, and stability in one’s physical and emotional environment.

Social Needs

Represents the basic human necessities for belonging, love, and affection, as part of Abraham Maslow's hierarchy of needs, emphasizing the importance of interpersonal relationships.