When Considering Projects for Implementation, Management Generally Has Three Options

question 33

Multiple Choice

When considering projects for implementation, management generally has three options. All of the following reflect possible managerial options EXCEPT:

• A)Management could attempt to find another combination of projects that would allow for a more complete utilization of available funds.
• B)Management could accept the current project or projects and hope that the preliminary analysis is correct.
• C)Management could choose to reject the projects under consideration and place the available funds in a short term security until the next period.
• D)Management could sell stock to raise sufficient capital to invest in the project if it is required to make it profitable.

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Definitions:

Weighted-Average Process

A method of accounting for inventory and production costs that averages costs over the units produced during a period, widely used in process manufacturing.

Units Completed

The number of finished goods produced during a specific period, ready for sale or distribution.

Beginning Of Production

The point in time when a manufacturing process starts, marking the commencement of production activities.

Process Costing System

A costing method used in production environments where similar products are mass-produced, allocating costs over the whole production process.