Incorporating Flotation Costs into the Analysis of a Project Will

question 64

Multiple Choice

Incorporating flotation costs into the analysis of a project will:

• A) cause the project to be improperly evaluated.
• B) increase the net present value of the project.
• C) increase the project's rate of return.
• D) increase the initial cash outflow of the project.
• E) have no effect on the present value of the project.

Understand how standard cost systems work in manufacturing settings.

Identify the budgeted versus actual performance differences.

Understand the role of machine-hours in costing and variances analysis.

Understand and apply the concept of standard costing in manufacturing operations.

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Definitions:

Consensus

A general agreement among a group of people or in the scholarly literature on a particular issue or topic.

Covariation Principle

A concept in social psychology that explains how we attribute behavior to consistent internal or external factors over time.

Discounting Principle

The tendency to reduce the importance of any potential cause of another’s behavior to the extent that other potential causes exist.

Internal Attribution

The process of assigning the cause of behavior to an individual's internal characteristics or disposition rather than to external factors.