In What Way(s)do Managers Make Cost-Benefit Decisions as to the Use

question 139

Multiple Choice

In what way(s) do managers make cost-benefit decisions as to the use of activity analysis or traditional costing methods?

• A)They reject activity analysis and stay with the simpler traditional method.
• B)They use activity-based costing because they want information that will help them be competitive.
• C)They use activity-based costing as a special analysis,but not as an ongoing information system.
• D)All of the answers are correct.

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Definitions:

Lessee

An entity or individual that leases an asset from another, the lessor, under the terms of a lease agreement.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset or property.

Discount Rate

is the interest rate used in discounted cash flow analysis to present value future cash flows, affecting the attractiveness of an investment.

Lease Versus Buy

A decision-making process in finance that compares the costs and benefits of leasing an asset versus purchasing it outright.