Question 1.1.Departments that lack clear revenue functions are generally classified as a/an __________. (Points : 1)

investment center cost center profit center balanced scorecard

Question 2.2.A profit center manager would normally be responsible for ____________________. (Points : 1)

costs, revenues, and the return on capital invested costs only profits only costs and revenues

Question 3.3.Because effective performance evaluation depends on a proper alignment of responsibility and accountability, it is important to separate fixed costs between _____________________. (Points : 1)

variable and fixed components long term and short term components annual and monthly components traceable and common components

Question 4.4.Sunk costs __________________________________. (Points : 1)

are to be ignored in making business decisions are relevant to future company decisions are to be recovered at any cost are important to investors

Question 5.5.Qualitative factors include ____________________________. (Points : 1)

the cost of the decision chosen consideration of the environmental impact of a decision customer considerations impacted by the decision more than one of the items listed here

Question 6.6.Capital budgeting decisions ___________________________. (Points : 1)

are only concerned with cash flow relate to daily expenses of the operating unit generally include the time value of money as a key consideration are not important for a small firm

Question 7.7.If the net present value of a project equals zero _______________. (Points : 1)

the project should be considered the project should not be considered then someone made an error in the calculation then a balanced scorecard should be adopted to compensate

Question 8.8.The payback method of evaluating long term investments ___________. (Points : 1)

considers the time value of money is more complex than the net present value method does not consider the time value of money is not addressed by any of the responses listed

Question 9.9.If the net present value of several projects are all positive _______________. (Points : 1)

the firm is obligated to invest in all of them the best investment will be the one with the highest overall net present value the firm should adjust their cost of capital rate (discount rate) and reevaluate the correct action is not addressed by any of the statements here.

Question 10.10.If the NPV of a long term investment is positive that would mean the Internal Rate of Return is ____. (Points : 1)

lower than the firms target discount rate higher than the firms target discount rate equal to the firms target discount rate undeterminable from the information given here