1)The terms controllable costs and noncontrollable costs are synonymous with var

ID: 2372744 • Letter: 1

Question

1)The terms controllable costs and noncontrollable costs are synonymous with variable costs and fixed costs, respectively.

True or False

2)An advantage of standard costs is that they simplify costing of inventories

True or False

3)In developing a standard cost for direct materials, a price factor and a quantity factor must be considered

True or False

4)Capital budgeting decisions usually involve large investments and often have a significant impact on a company's future profitability

True or False

5)The time value of money is not an important factor when analyzing capital invesments

True or False

6)The present value of a stream of cash flows will change based on the discount rate used

True or False

7)The payback method of analyzing capital investments ignores the time value of money

True or False

Ans-1)False

Ans-2)True

Ans-3)True

Ans-4)True

Ans-5)False

Ans-6)True

Ans-7)True

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