The Benefit-Cost Ratio Is Calculated by Dividing the Present Value

question 43

Short Answer

The benefit-cost ratio is calculated by dividing the present value of the future net cash flows by the ________________.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to evaluate actual production costs.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives to solve problems or create useful products.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets.

Standard Price

A predetermined cost or selling price of a product or service, often used in budgeting and accounting to measure variances in actual cost or price.