Which of the Following Statements Regarding the NPV Decision Rule

question 12

Multiple Choice

Which of the following statements regarding the NPV decision rule is FALSE?

• A)Reject projects with a NPV of zero,as accepting them is equivalent to reducing firm value.
• B)When faced with a set of alternatives,choose the one with the highest NPV.
• C)Accept those projects with a positive NPV,as accepting them is equivalent to receiving their NPV in cash today.
• D)Reject those projects with a negative NPV.

---

Definitions:

Job Order Costing

An accounting method used to track the costs associated with producing a specific batch of products or performing a specific service.

Costing System

A method used by businesses to track, record, and analyze costs associated with their products or services to ensure profitability.

Process Costing Method

An accounting methodology used to allocate production costs to products based on the process they undergo, typically in industries where goods are produced in a continuous fashion.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units of production.