What Is the Assessment Method Widely Used in Practice Which

question 48

Multiple Choice

What is the assessment method widely used in practice which enables managers to screen investment projects to determine which projects can recoup their investment outlay the fastest?

• A)internal rate of return method.
• B)accounting rate of return method.
• C)payback method.
• D)net present value method.

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Definitions:

Material Price Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Standard Purchase Price

The predetermined cost of acquiring goods, set for budgeting and costing purposes.

Actual Purchase Price

Actual Purchase Price refers to the actual amount paid for goods or materials, including additional costs such as delivery charges and taxes.

Direct Material

Primary raw materials that can be specifically identified and directly charged to the manufacturing of a specific product.