(8) The operating income in 2020 is higher than that in 2019, so the enterprise wants to do strategic analysis. Which of the calculating formulate about Strategic Analysis of Operating Income is INCORRECT?

A. Revenue effect of growth = (Actual units of output sold in 2020 - Actual units of output sold in 2019) * Selling price in 2019

B. Revenue effect of price recovery = (Selling price in 2020 - Selling price in 2019) * Actual units of output sold in 2019

C. Cost effect of price recovery for variable costs = (Input price in 2020 - Input price in 2019) * Units of input required to produce 2020 output in 2019

D. Cost effect of productivity for variable costs = (Actual units of input used to produce 2020 output - Units of input required to produce 2020 output in 2019) * Input price in 2020

(9) Which of the following statements about capital budgeting is INCORRECT? A. The NPV method calculates the expected net monetary gain or loss from a project

by discounting to the present all expected future cash inflows and outflows, using

the required rate of return. B. The IRR method computes the rate of return at which a projects present value of

expected cash inflows equals the present value of its expected cash outflows. C. The payback method emphasizes the time value of money and considers cash flows

beyond the payback period. D. The accrual accounting rate of return divides an accrual accounting measure of

average annual income from a project by an accrual accounting measure of its

investment.