The Incremental Cash Flows for a Project Are Estimated As

question 58

Multiple Choice

The incremental cash flows for a project are estimated as:

• A)accounting profit before taxes.
• B)cash flows before taxes.
• C)cash flows after taxes.
• D)accounting profit after taxes

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Definitions:

Direct Materials

The raw materials and components that are directly incorporated into a finished product and can be easily traced to it.

Activity Level

A measure of the volume of production or services that determines the amount of costs incurred in a business.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive personnel, accounting, and human resources.

Activity Variance

The difference between the budgeted amount of activity and the actual activity level.