Which of the Following Cost Management Tools Supports the Firm's

question 88

Multiple Choice

Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?

• A)service industry growth
• B)global competition
• C)preparing an earnings report for the SEC
• D)value-chain analysis

---

Definitions:

Capital Project

A long-term investment undertaken to build, add or improve on a capital asset such as buildings or infrastructure, with the expectation of enhancing value.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.