Which Statement About the Selection of Mutually Exclusive Projects Using

question 28

Multiple Choice

Which statement about the selection of mutually exclusive projects using the benefit-cost ratio method is true?

• A)The benefit-cost ratio selects the project with the lowest ratio.
• B)The benefit-cost ratio may rank projects differently from the net present value method.
• C)The benefit-cost ratio may select a project,even though it may have a negative net present value.
• D)The benefit-cost ratio will not select a project with a ratio greater than 1.

Identify the users and uses of accounting information.

Understand the characteristics that distinguish different forms of business organization.

Explore various opportunities within accounting and its related fields.

Understand and explain the importance of ethics in accounting.

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Definitions:

Spaghetti Consumption

The amount of spaghetti consumed over a certain period, often used to measure food consumption patterns or preferences.

Consumption

The use of goods and services by households or individuals, often regarded as the final purpose of economic activity.

Utility Function

A mathematical representation that ranks individuals' preferences for sets of goods or outcomes, where higher values imply higher preference levels.

Consumptions

The act of using goods and services by households or individuals, leading to the satisfaction of their needs and wants.