GB519 Management Level Control quiz 4
These costs are recorded routinely by cost accounting systems.
Gross profit per unit of product.
Depends on whether the company is operating at or below the breakeven point.
It assumes cash proceeds during the life of a project can be reinvested to earn the same rate of return as the weighted-average cost of capital.
A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return.
The project initiation stage and final disposal stage only.
Net proceeds from the sale plus the after-tax gain on the sale.
They provide feedback to managers regarding the soundness of their decision-making.
NPV facilitates comparisons of mutually exclusive projects requiring different amounts of initial investments.