Specik, Inc Which of the Following Are Relevant in Choosing Between the {Alternative2}}\\
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question 77

Multiple Choice

Specik, Inc.is considering the following alternatives: $\begin{array}{lll} &\underline{\text {Alternative1}}& \underline{\text {Alternative2}}\\\text { Revenues } & \$ 120,000 & \$ 120,000 \\\text { Variable costs } & 60,000 & 65,000 \\\text { Fixed costs } & 35,000 & 39,000\end{array}$ Which of the following are relevant in choosing between the alternatives?

• A)variable costs
• B)revenues
• C)fixed costs
• D)variable costs and fixed costs

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a company’s wealth maximization.

Average Accounting Return

A measure of an investment's profitability, calculated as the average net income divided by the average investment.

Average Book Value

The mean value of an asset or investment determined by its original cost minus depreciation or amortization.

Average Cash Inflow

The mean amount of money received by a company over a defined period, typically calculated for assessment or planning purposes.