Which of the Following Two Methods Are Typically Used for Initial

question 121

Multiple Choice

Which of the following two methods are typically used for initial screening of investments,rather than for detailed,in-depth analysis?

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

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Definitions:

Direct Labor Costs

The salary and benefits awarded to staff members actively participating in the manufacturing of products or provision of services.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific period.

Raw Materials Purchased

The total cost of all raw materials bought by a company for use in production.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries of supervisors, that cannot be directly traced to specific products.