Which of the Following Is Calculated Using ONLY Accounting Numbers

question 217

Multiple Choice

Which of the following is calculated using ONLY accounting numbers?

• A) Payback period
• B) Profitability index
• C) Net present value
• D) Internal rate of return
• E) Average accounting return

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Definitions:

Short-term Focus

Concentration on immediate goals or results, often at the expense of long-term objectives.

Activity-based Management

An approach to business management focusing on identifying and managing activities that drive costs and improve business processes and profitability.

Process Costing

An accounting methodology used to allocate costs to units of production in continuous or mass production processes.

Customer Value

Customer value is the perception of benefits received by a customer from a product or service compared to the costs and alternatives, often influencing purchasing decisions.