Get Started
899

Q: A Good CFO will tell you that it is important to look at your bottom line and determine how to increase profits for the organization. Veronica, the new CFO at a local university, is taking that approach and applying it to new projects. Therefore,she wants to include costs from each phase of the project on a total expenditure is known as

  • 1
    An opportunity cost
  • 2
    A sunk cost
  • 3
    NPV
  • 4
    A life cycle
  • Show Answer
  • Workspace

Answer : 4. "A life cycle"
Explanation :

Answer: D) A life cycle Explanation: Life Cycle costing includes the costs from each phase of the project life cycle when the total investment costs are calculated. Answer A is incorrect because an opportunity cost is the difference between a chosen investment and the one that is passed up. Answer B is incorrect because sunk costs are costs that have been incurred and cannot be reversed. Answer C is incorrect because net present value (NPV) is the present value of cash inflows(benifits) minus the present value of cash outflows (costs).

The Most Comprehensive Exam Preparation Platform

Get the Examsbook Prep App Today