[10/08, 17:11] +91 94640 73542: One possible capital budgeting decision is the potential acquisition of a patent from a competitor.

a. TRUE

b. FALSE [10/08, 17:11] +91 94640 73542: A cost is $4,900 at 800 units, $5,600 at 900 units, and $6,200 at 980 units. This cost is a

a. variable cost.

b. fixed cost.

c. step cost.

d. mixed cost. [10/08, 17:12] +91 94640 73542: If the net present value is equal to zero, the project should be accepted.

a. FALSE

b. TRUE [10/08, 17:13] +91 94640 73542: Decision alternatives that provide the largest incremental profit are always the best option.

a. TRUE

b. FALSE [10/08, 17:21] +91 94640 73542: Decision alternatives that provide the largest incremental profit are always the best option.

a. TRUE

b. FALSE [10/08, 17:22] +91 94640 73542: Both the payback period and the net present value methods take into account the timing of future cash flows.

a. FALSE

b. TRUE [10/08, 17:35] +91 94640 73542: Cost behavior patterns are assumed to be linear at all activity levels when a regression is used to estimate cost behavior.

a. TRUE

b. FALSE [10/08, 17:35] +91 94640 73542: The total amount reported on an income statement for selling and administrative expenses the same amount regardless if variable of full costing is used.

a. TRUE

b. FALSE [10/08, 17:38] +91 94640 73542: Both the payback period and the net present value methods take into account the timing of future cash flows.

a. FALSE

b. TRUE [10/08, 17:39] +91 94640 73542: In net present value analysis, the purchase of equipment today results in a cash outflow that is not discounted.

a. TRUE

b. FALSE