The Finding from Surveys of the Methods of Business Investments

question 66

Multiple Choice

The finding from surveys of the methods of business investments that is true is:

• A)businesses generally only use one method to assess each investment decision.
• B)there is a tendency for larger businesses to use the discounting methods.
• C)the payback method is hardly used in practice.
• D)All of the statements are true.

---

Definitions:

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that change in proportion to the level of production or business activity.

Fixed Cost

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.