GB 519 RANK Motivated Minds/gb519rank.com GB 519 RANK Motivated Minds/gb519rank.com | Page 49

Current direct material costs for the part. UNIT 4 QUIZ Question 7. Question : Which one of the following is an advantage of the book (accounting) rate of return method for analyzing capital investment proposals? Student Answer: It is not affected by different accounting methods. It is precise and objective. Data for calculating the return are typically readily available. The method explicitly adjusts for the time value of money. The accounting rate of return is generally approximately equal to a project's internal rate of return (IRR). Question 8. Question : Which one of the following statements concerning capital budgeting is not true?