Which of the Following Should Be Accounted for in the Capital

question 58

Multiple Choice

Which of the following should be accounted for in the capital budgeting decision?

• A) Externalities.
• B) Intangible considerations that cannot be measured.
• C) Opportunity costs.
• D) Sunk costs.

---

Definitions:

Matching Capacity

The ability of a company to align its production capacity with the demand for its products.

Impact on Expenses

The effect on a company's costs, often analyzed to assess changes in financial performance.

Time-Driven Activity-Based Costing

A cost accounting method that assigns costs to products or services based on the time resources are used in business activities.

Tech Support Department

A division within a company that provides assistance and support services to users experiencing technical problems with products or services.