Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits must be put into common units (such as dollars) if they are to be compared. O B. In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that action is not good for the firm's investors. OC. In order for costs and benefits to be compared, they must typically be converted to common units but not converted to the same point in time. O D. A financial manager's decisions should provide benefits to the firm without incurring any costs.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 15MC: The high-low method and least-squares regression are used by managers to _____________________. A....
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Which of the following statement is correct about cost-benefit analysis?
O A. Costs and benefits must be put into common units (such as dollars) if they are to be compared.
O B. In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that
action is not good for the firm's investors.
C. In order for costs and benefits to be compared, they must typically be converted to common units but not converted to the
same point in time.
O D. A financial manager's decisions should provide benefits to the firm without incurring any costs.
Click to select your answer.
Transcribed Image Text:Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits must be put into common units (such as dollars) if they are to be compared. O B. In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that action is not good for the firm's investors. C. In order for costs and benefits to be compared, they must typically be converted to common units but not converted to the same point in time. O D. A financial manager's decisions should provide benefits to the firm without incurring any costs. Click to select your answer.
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