Which One of These Statements Related to Discounted Payback Is

question 47

Multiple Choice

Which one of these statements related to discounted payback is correct? 

• A) Payback is a better method of analysis than discounted payback. 
• B) Discounted payback is used more frequently in business than payback. 
• C) Discounted payback does not require a cutoff point. 
• D) Discounted payback is biased towards short-term projects. 
• E) The discounted payback period increases as the discount rate decreases. 

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Definitions:

Job-Order Costing System

A costing method used when products or services are produced upon specific customer orders, allowing for detailed tracking of costs for each job.

Unit Product Cost

The total expense incurred in creating a product, divided by the number of units produced.

Allocation Bases

Criteria or variables used as a foundation to distribute or assign costs among different cost objects in a fair and systematic manner.

Overhead Resources

Resources used in the day-to-day operations of a business that are not directly tied to a specific product or service, such as utilities and rent.