Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)Because value is lost when a resource is used by another project,we should include the opportunity cost as an incremental cost of the project.
• B)Sunk costs are incremental with respect to the current decision regarding the project and should be included in its analysis.
• C)Overhead expenses are associated with activities that are not directly attributable to a single business activity but instead affect many different areas of the corporation.
• D)When computing the incremental earnings of an investment decision,we should include all changes between the firm's earnings with the project versus without the project.

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Definitions:

Voting

The act of expressing a choice or decision in an election or other formal decision-making process.

Straight Voting

A method of voting in corporate elections where shareholders must assign all of their votes to one candidate for each vacancy.

Annual General Meeting

A mandatory yearly gathering of a company's interested shareholders to discuss company affairs.

Nominees

Individuals appointed or proposed to act on behalf of others in specific roles or to fulfill certain duties.