Capital Budgeting Must Be Placed on an Incremental Basis

question 30

Multiple Choice

Capital budgeting must be placed on an incremental basis.This means that ____ must be ignored and ____ must be considered.

• A) sunk cost; opportunity cost
• B) sunk cost; financing cost
• C) cannibalization; opportunity cost
• D) opportunity cost; net working capital

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Definitions:

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An ideological and social system advocating the organization of society by corporate groups, such as agricultural, labor, military, or scientific affiliations.

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An influential American evangelist during the late 19th and early 20th centuries known for his fiery sermons and mass conversions.

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A manner of performing on stage that involves specific techniques, gestures, and conventions unique to theatrical art.