Which of the Following Statements Regarding the Valuing of Costs

question 59

Multiple Choice

Which of the following statements regarding the valuing of costs and benefits is NOT correct?

• A)The first step in evaluating a project is to identify its costs and benefits.
• B)In the absence of competitive markets,we can use one-sided prices to determine exact cash values.
• C)Competitive market prices allow us to calculate the value of a decision without worrying about the tastes or opinions of the decision maker.
• D)Because competitive markets exist for most commodities and financial assets,we can use them to determine cash values and evaluate decisions in most situations.

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Definitions:

Judicial Bond

A type of surety bond required by courts to ensure the fulfillment of a legal action or compensation for possible losses.

Contract

A formal agreement that binds two or more parties together under legal accountability.

Farm Machinery

Equipment and machinery specifically designed and used for agricultural operations.

Consumer Goods

Products that are purchased for personal use or consumption by the general public, such as clothing, food, and electronics.