A Situation in Which Accepting One Investment Prevents the Acceptance

question 93

Multiple Choice

A situation in which accepting one investment prevents the acceptance of another investment is called the:

• A)net present value profile.
• B)operational ambiguity decision.
• C)mutually exclusive investment decision.
• D)issues of scale problem.
• E)multiple rates of return decision.

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Definitions:

Units

A measure of quantity that indicates the count or quantity of a product or service.

High-Low Method

An approach to estimate fixed and variable costs using the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor costs.

High-Low Method

A method utilized in managerial accounting for predicting variable and fixed costs by analyzing the activity's maximum and minimum levels.