Managers Should Apply Two Principles to Obtain Accurate and Useful

question 83

Multiple Choice

Managers should apply two principles to obtain accurate and useful cost functions.These principles are _____.

• A)plausibility and believability
• B)plausibility and reliability
• C)reliability and validity
• D)believability and validity

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Definitions:

Projects

Specific tasks or programs undertaken to achieve a goal, often with a defined scope, timeline, and resources.

Average Accounting Return

A financial metric that calculates the average profits earned on investments relative to the book value of assets over a certain period.

Mutually Exclusive Investments

Investment options where the choice of one option precludes the selection of another, requiring careful analysis to determine the most beneficial choice.

Incorrect Decisions

Decision-making instances that lead to unfavorable outcomes or failures due to errors in judgement, analysis, or implementation.