Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)In general,the IRR rule works for a stand-alone project if all of the project's positive cash flows precede its negative cash flows.
• B)There is no easy fix for the IRR rule when there are multiple IRRs.
• C)The payback rule is primarily used because of its simplicity.
• D)No investment rule that ignores the set of alternative investment alternatives can be optimal.

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Definitions:

Activity Cost Pools

Groupings of individual costs based on the activities that drive them, used in activity-based costing to allocate costs more accurately.

Batch Set-Up

The process of preparing equipment and systems for manufacturing a particular batch of products, involving calibration, cleaning, and test runs.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more accurate cost information.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, helping to more accurately determine the cost of products or services.