The Last Step in the Capital Budgeting Process Is Control,which

question 94

Multiple Choice

The last step in the capital budgeting process is control,which compares the actual results with the projected results.These comparisons are known as ________.

• A) net cash inflows
• B) post-audits
• C) rankings
• D) variance analysis

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Definitions:

Selling Commission

A fee paid to a sales agent or an employee based on the value of sales generated.

Contribution Margin

The amount remaining from sales revenue after variable production costs have been deducted, indicating how much contributes toward covering fixed costs and generating profit.

Contribution Format

A contribution format income statement categorizes costs as variable or fixed and calculates a contribution margin.

Net Operating Income

Profits from a company's core business operations, excluding deductions of interest and taxes.