When Several Sign Reversals in the Cash Flow Stream Occur,a

question 158

True/False

When several sign reversals in the cash flow stream occur,a project can have more than one IRR.

---

Definitions:

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as indirect labor, maintenance, and utilities, that cannot be directly traced to specific products.

Job Cost Sheets

Detailed records that document the costs associated with a specific job or project.

Overapplied Overhead

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period.

Underapplied Overhead

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period.