Which One of the Following Indicates That an Independent Project

question 55

Multiple Choice

Which one of the following indicates that an independent project is definitely acceptable?

• A)Profitability index greater than 1.0
• B)Negative net present value
• C)Modified internal rate return that is lower than the requirement
• D)Zero internal rate of return
• E)Positive average accounting return

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing plant, applied uniformly to all units produced.

Volume-related Measures

Metrics that are influenced by or correlate with the volume of production or sales.

Plantwide Overhead Rate Method

A single overhead absorption rate used across an entire factory or plant, applied to all units produced regardless of department or product line.

Unit Of Product

A unit of product is a standard measure of quantity or output which can be counted or used to quantify inventory, production, or sales in business operations.