When Evaluating Decision Alternatives,one Option Is to Take No Action

question 27

True/False

When evaluating decision alternatives,one option is to take no action.

---

Definitions:

Cumulative Weighted Average Expenditures

The total cost of investments or expenditures over a period, weighted by the time each amount was invested or incurred, used in capital budgeting or to calculate interest during construction.

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an organization.

Capitalized

Refers to recording an expense or cost as an asset on the balance sheet, rather than as an expense on the income statement, to spread out the expense over its useful life.

Long-Lived Assets

These are tangible or intangible assets that a company expects to use for more than one year, including property, plant, and equipment.