Which of the Following Statements Is CORRECT

question 113

Multiple Choice

Which of the following statements is CORRECT?

• A) time lines cannot be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity.
• B) a time line is not meaningful unless all cash flows occur annually.
• C) time lines are not useful for visualizing complex problems prior to doing actual calculations.
• D) time lines can be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.
• E) time lines can only be constructed for annuities where the payments occur at the end of the periods, i.e., for ordinary annuities.

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Definitions:

Fluctuations

Variations or changes in level, degree, or value that occur over time.

Responsibility Centres

Sections or departments within an organization, each overseen by a manager who is accountable for its performance and financial outcomes.

Support Department Costs

Expenses associated with departments that do not directly produce goods or services but support those who do, like maintenance or administration.

Manufacturing Costs

Expenses directly tied to the process of producing finished goods, including raw materials, labor, and overhead costs.