Which of the Following Is a Characteristic of the Payback

question 12

Multiple Choice

Which of the following is a characteristic of the payback period?

• A)It ignores cash flows that occur after the project is paid off.
• B)It accounts for the time value of money.
• C)It is always consistent with the acceptance rule of the NPV method.
• D)It cannot be applied to the projects with inconsistent cash flows.

Understand the concept and purpose of zero-based budgeting.

Recognize factors that contribute to budget acceptance.

Identify strategies for managing performance, including the creation and impact of budgetary slack.

Understand how budgeting is used to evaluate performance and provide incentives.

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Definitions:

Noncontrolling Interests

A portion of equity in a subsidiary not held by the parent company, representing the minority ownership's share of the subsidiary's net assets and income.

Net Income

The total profit of a company after subtracting all expenses from revenues, including taxes and operating expenses.

Domestic Corporations

Companies that are incorporated under the laws of a specific country and operate within that country.

Noncontrolling Interest

The portion of equity in a subsidiary not owned by the parent company, also known as minority interest.