Which of the Following Statements Is FALSE

question 66

Multiple Choice

Which of the following statements is FALSE?

• A)The simplest method used to calculate depreciation is the straight-line method.
• B)A sunk cost is any unrecoverable cost for which the firm is already liable.
• C)Unlevered Net Income = EBIT × τ_c.
• D)The decision to continue or abandon should be based only on the incremental costs and benefits of the project going forward.

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Definitions:

Total Quality Management Controls

Strategies and tools used in Total Quality Management (TQM) to ensure that products or services meet specific quality standards and customer satisfaction.

Formalization

The degree to which an organization uses rules, procedures, and written documentation to standardize behaviors and decisions.

Process Controls

Systems and procedures implemented to regulate and guide processes, ensuring they meet certain standards or achieve desired outcomes.

Conglomerates

Firms that own several different unrelated businesses.