The Most Widely Used Capital Budgeting Technique Is

question 32

Multiple Choice

The most widely used capital budgeting technique is:

• A) the payback period.
• B) net present value.
• C) internal rate of return.
• D) the profitability index.
• E) modified internal rate of return.

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Definitions:

LIFO

"Last In, First Out," an inventory costing method where the most recently produced or acquired items are sold or used first, potentially reducing taxes during inflation.

FIFO

An inventory valuation method that assumes that the first items placed in inventory are the first sold, thus costs of the oldest inventory are used in the cost of goods sold calculation.

Controls

Mechanisms or policies implemented to regulate processes and ensure the accuracy, reliability, and integrity of financial and operational information.

Clothing Store

A clothing store is a retail business establishment that specializes in selling garments and accessories to consumers.