Managers Typically Look at the Initial Outlay for the Project

question 19

Multiple Choice

Managers typically look at the initial outlay for the project as its capital expenditure and determine ________ from this capital expenditure.

• A)interest expenses
• B)dividends
• C)depreciation
• D)CEO expenses

---

Definitions:

Marginal Benefits

The incremental satisfaction or benefit a consumer derives from consuming an additional unit of a good or service.

Net Benefits

The total benefits of a decision or project after subtracting all the costs associated with it.

Total Cost

The complete cost of producing a good or service, combining both fixed and variable expenses.

Total Benefit

The sum of all the positive effects or satisfaction received by consuming a product or service.