A Cost-Benefit Analysis of a Highway Is Difficult to Conduct

question 82

Multiple Choice

A cost-benefit analysis of a highway is difficult to conduct because analysts

• A)cannot estimate the explicit cost of a project that has not been completed.
• B)are unlikely to have access to costs on similar projects.
• C)are not able to consider the opportunity cost of resources.
• D)will have difficulty estimating the value of the highway.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregated data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Profit & Loss Statement

A financial report that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Account Types

This refers to the various categories used in accounting to classify financial transactions, such as assets, liabilities, equity, revenue, and expenses.

Revenues

Represent the total amount of income generated by the sale of goods or services related to a company's primary operations.