If the Sign of the Cash Flows for a Project

question 20

Multiple Choice

If the sign of the cash flows for a project changes two times then the project has:

• A) one IRR
• B) two IRRs
• C) three IRRs
• D) None of the above

---

Definitions:

Activity Rate

The cost driver rate that is used to assign activity costs to products or services based on their consumption of the activity.

Cost Pools

Groups of individual costs combined to allocate costs more efficiently.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming for more accurate product costing.

Order Processing

The activities involved in receiving, handling, and fulfilling customer orders, from initial receipt through delivery.