Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A) Project externalities are direct effects of the project that may increase of decrease the profits of other business activities of the firm.
• B) Incremental earnings are the amount by which the firm's earnings are expected to change as a result of the investment decision.
• C) The average selling price of a product and its cost of production will generally change over time.
• D) Any money that has already been spent is a sunk cost and therefore irrelevant in the capital budgeting process.

---

Definitions:

Chunking

A memory technique involving organizing individual pieces of an information set into larger, more manageable units or chunks.

Automatic Processing

The subconscious aspect of cognition that handles tasks so well learned that they require little or no conscious thought.

Mnemonics

Memory aids, especially those techniques that use vivid imagery and organizational devices to enhance recall.

Spelling

The process or activity of writing or naming the letters of a word in the correct sequence.