If Project X Has a Cost of $6 and Provides

question 54

Multiple Choice

If Project X has a cost of $6 and provides a benefit of $10 and Project Y has a cost of $25 and provides a benefit of $27,which of the following statements is true?

• A) An individual can optimize by choosing Project X.
• B) An individual can optimize by choosing Project Y.
• C) Switching from Project X to Project Y increases net benefit by $2.
• D) Switching from Project Y to Project X decreases net benefit by $2.

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Definitions:

Revenue Journal

This is an accounting journal that records all the sales transactions of a company where revenue is recognized, detailing the amount and source of each sale.

Office Supplies

Consumable items and equipment used in offices for daily operations, such as paper, pens, and printers.

Accommodation

Providing convenience or the act of furnishing something like a room or building for use or lodging.

Control Account

A summary account that consolidates detailed information held in subsidiary ledgers, simplifying the general ledger.