How long the investment will generate cash inflows


Answer the following true/False questions:

1. investment center managers are evaluated on their use of center assets to generate income. T/F

2. Direct Costs require allocation across departments. T/F

3. The Payback method of evaluating an investment fails to consider how long the investment will generate cash inflows beyond the payback period. T/F

4. The concept of incremental cost is the same as the concept of differential cost. T/F

5.Incremental costs should be considered in a make or buy decision. T/F

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Accounting Basics: How long the investment will generate cash inflows
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