Which of the Following Would NOT Be Considered as an Input

question 53

Multiple Choice

Which of the following would NOT be considered as an input into a capital budgeting decision?

• A)scrap value of equipment sold at the end of a project
• B)labour savings as a result of mechanization of a process
• C)cost outlays many years after the project has started
• D)amortization on a straight line basis

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Definitions:

Fixed Fee

A pricing strategy where a single fixed amount is charged for a service regardless of usage or time required.

Monthly Basis

Refers to any activity or calculation done or occurring every month.

Set-Up Costs

Expenses incurred to prepare and configure equipment or processes for production.

Activity-Based Costing

An approach to costing that recognizes organizational activities and distributes each activity's costs to every product and service, reflecting their real consumption.