Factors That Cause Changes in Resource Usage, Activity Usage, Costs

question 16

Multiple Choice

Factors that cause changes in resource usage, activity usage, costs and revenues are called

• A)indirect costs.
• B)drivers.
• C)assignments.
• D)cost objects.

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Definitions:

Payback

A capital budgeting method that calculates the period of time required for the return on an investment to repay the original investment cost.

Cash Flow

Cash Flow is the total amount of money being transferred into and out of a business, especially as affecting liquidity. It is often considered in terms of net cash flow, which is income minus expenses.

Project

A temporary endeavor designed to produce a unique product, service, or result with specific objectives.

WACC

The Weighted Average Cost of Capital is determined by calculating a firm's capital cost, with proportional weights assigned to each category of capital.