Evaluation of the performance of managers of profit center

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Reference no: EM13573997

Answer the following True/False questions:

1. An advantage of the break even time method over the payback period method is that it recognizes the time value of money. T/F

2. Neither the payback nor the accounting rate of return methods of evaluating investments considers time value of money. T/F

3. Decision to accept an additional volue of business should be based on a conparison of the revenue from the additional business with the sunk costs of producing that revenue. T/F

4. Evaluation of the performance of managers of profit center assumes that the managers can control or influenece both costs and revenue generation. T/F

5. Another name for the relevant cost is unavoidable cost. T/F

Reference no: EM13573997

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