An investment project with a project profitability index

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Reference no: EM13786687

True or False:

1. An investment project with a project profitability index of -0.05 has an internal rate of return that is less than the discount rate

2. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period.

3. Under absorption costing, the profit for a period is affected by a change in the number of units of finished goods in inventory.

4. Purchase of poor quality materials may cause a favourable materials price variance and an unfavourable labor efficiency variance.

Reference no: EM13786687

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