In Valuing Real Options for International Projects,one of the Key

question 35

Multiple Choice

In valuing real options for international projects,one of the key factors is:

• A)political risk.
• B)economic risk.
• C)currency volatility.
• D)the discount rate.

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Definitions:

Total Quality Costs

The cumulative cost of all efforts to achieve product or service quality, including prevention, appraisal, and failure costs.

Weighted-Average Method

A process costing method that blends together units and costs from both the current and prior periods.

Process Costing System

An accounting method used for homogeneous products, allocating costs to units of product based on the processes they undergo.

Equivalent Unit

A measure used in process costing that converts partially completed units into a smaller number of fully completed units.