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Answer the following true/False questions: 6. investment center managers are evaluated on their use of center assets to generate income. T/F 7. Direct Costs require

Answer the following true/False questions:

6. investment center managers are evaluated on their use of center assets to generate income. T/F

7. Direct Costs require allocation across departments. T/F

8. The Payback method of evaluating an investment fails to consider how long the investment will generate cash inflows beyond the payback period. T/F

9. The concept of incremental cost is the same as the concept of differential cost. T/F

10.Incremental costs should be considered in a make or buy decision. T/F

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