Which of the Following Statements Is False

question 92

Multiple Choice

Which of the following statements is false?

• A) Sales will ultimately decline as the product nears obsolescence or faces increased competition.
• B) Managers sometimes continue to invest in a project that has a negative NPV because they have already invested a large amount in the project and feel that by not continuing it, the prior investment will wasted.
• C) With straight-line depreciation the asset's cost is divided equally over its life.
• D) A projects unlevered net income is equal to its incremental revenues less costs and depreciation, evaluated on an pre-tax basis.

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Definitions:

Performance Pyramid

The Performance Pyramid is a conceptual model that outlines how to measure organizational performance across different levels, focusing on financial and non-financial indicators.

Strategic Control

A management activity focused on monitoring and guiding the strategy implementation process to ensure that the organization's strategic goals are met.

Control Measures

Strategies, policies, or actions implemented to prevent, manage, or mitigate risk, ensure compliance, or meet operational benchmarks.

Cycle Time

The total time from the beginning to the end of a process, operation, or cycle, often used to assess efficiency and productivity in manufacturing and other processes.