Using the Benefit-Cost Ratio the Decision Rule Is to Accept

question 25

Multiple Choice

Using the benefit-cost ratio the decision rule is to accept projects with a benefit-cost ratio:

• A)equal to 1.
• B)less than 1.
• C)greater than the opportunity cost.
• D)greater than 1.

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Definitions:

Quality Cost Report

A document detailing the costs associated with ensuring product quality, including prevention, appraisal, and failure costs.

Internal Failure Cost

Costs incurred due to defects in goods or services before they are delivered to the customer, part of quality management expenses.

Quality Cost Report

A financial report detailing the costs associated with ensuring and maintaining the quality of products or services, including prevention, appraisal, and failure costs.

Appraisal Cost

Costs incurred to ensure that a product or service meets quality standards, including testing, inspections, and certifications.