The overall present value net cost is determined by adding all the present value

Question

The overall present value net cost is determined by adding all the present value answers to arrive at a net result, including which of the following? 0 A. Positive numbers O B. Negative numbers ° C. Positive and negative numbers D.None of these is correct QUESTION 13 Estimates may be relied upon as inputs to certain reports. However, such estimates would not be appropriate when preparing: A. forecasts O B. internal financial statements ° C. audited financial statements OD. budgets QUESTION 14 Parametric analysis is one type of benchmarking analysis. In parametric analysis: 0 A, the characteristics or attributes of similar services are examined O B. the process that serves as a standard for comparison is examined O C.the characteristics or attributes of similar services and the process that serves as a standard for comparison are examined O D. None of these is correct QUESTION 15

Explanation / Answer

Q12: b: Negative numbers

(Since all costs are negative numbers, PV of net costs adds up only the negative numbers)

Q13: C: audited financial statements

(The audited statements must have the actual accurate data rather than estimates. These are given to the stakegholders of the business and hence estimates cannot be considered)

Q14: A: the characteristics or attributes of similar services or products are examined

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