Static Budgets

question 80

Multiple Choice

Static budgets

• A) I and III only
• B) II and III only
• C) I and II only
• D) I, II, and III

---

Definitions:

Average Rate of Return

A metric used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Capital Investment Proposals

Suggestions or plans for spending on long-term assets intended to improve a company's profitability in the future.

Cash Payback Period

The duration required for an investment to generate cash flows sufficient to recoup the initial outlay.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core operations.