Indicate Whether Each of the Following Statements Is True or False

question 81

Short Answer

Indicate whether each of the following statements is true or false.
The further into the future a cash receipt is expected to occur,the higher is its present value.______
The return on investment measures the compensation a company expects to receive from investing in capital assets.______
Most companies use their cost of capital to estimate the minimum return on investment required from capital investments.______
When a company invests in capital assets,it sacrifices present dollars for the opportunity to receive future dollars.______
The required rate of return on a capital investment is also referred to as the hurdle rate or discount rate.______

---

Definitions:

General and Administrative

Expenses related to the day-to-day operations of a business that are not directly tied to production, including salaries of non-production staff, office supplies, and rent.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or product.

Prime Costs

Refers to the direct costs of manufacturing a product, including direct materials and direct labor.

Conversion Costs

Expenses incurred when transforming raw materials into finished goods, typically including labor and overhead costs.