In Actual Practice, Managers May Use The

question 79

Multiple Choice

In actual practice, managers may use the:
I.IRR because the results are easy to communicate and understand.
II.payback because of its simplicity.
III.net present value because it is considered by many to be the best method of analysis.

• A)I and II only
• B)II and III only
• C)I and III only
• D)I, II, and III
• E)None of the above

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Definitions:

Warranty Expense

Costs that a company expects to incur under its product warranty promises for repairing or replacing defective products sold.

Employer's Payroll Taxes Expenses

Employer's payroll taxes expenses refer to the taxes that employers are required to pay on behalf of their employees, including social security, Medicare taxes, and federal and state unemployment taxes.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. payroll tax deducted to fund the Social Security and Medicare programs.

FUTA Tax

The Federal Unemployment Tax Act tax, paid by employers to fund the unemployment account of the federal government.