The Computations Required for the Net Present Value Method Are

question 80

True/False

The computations required for the net present value method are less than those the computation required for the average rate of return method.

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Definitions:

Service Center

A department or facility providing support services to other units within an organization, often not directly generating profit.

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.