Which of the Following Is a Factor That Complicates Capital

question 56

Multiple Choice

Which of the following is a factor that complicates capital investment analysis?

• A) Equal proposal lives
• B) Certainty of estimates of revenues, expenses, and cash flows
• C) Sunk cost
• D) Leasing alternative

---

Definitions:

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.

Uncontrollable Costs

Costs that cannot be influenced or changed by the actions of a specific individual or management level within the organization.