Which Factor Is NOT Relevant When Determining Incremental Cash Flows

question 16

Multiple Choice

Which factor is NOT relevant when determining incremental cash flows for a new product?

• A)the land that would be used for the new project and could be sold to another firm
• B)revenues from an existing product that would be lost as a result of customers switching to the new product
• C)shipping and installation costs associated with preparing a machine that would be used to produce the new product
• D)the cost of a marketing study that was completed last year related to the new product (This research led to the tentative decision to go ahead with the new product, and the cost of the research was expensed for tax purposes last year.)

---

Definitions:

Organization Cultures

The shared values, beliefs, norms, and practices that shape the behavior and actions of individuals within an organization.

Success Rates

A measure of the frequency or likelihood with which desired outcomes are achieved within a specific context, often used in evaluating performance or effectiveness.

HR Planning

HR planning is the process an organization undertakes to foresee its future human resource requirements and manage the recruitment, selection, and training of employees accordingly.

Mergers and Acquisitions

Mergers and acquisitions refer to the consolidation of companies or assets through various financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.