Identify the one true statement. a. Benefit-cost analysis is recommended for a formal economic analysis of private programs or projects. b. A common benefit-cost analysis method is to compare the difference in benefits and costs, i.e., (B − C). c. The B/C ratio must use the present worth of all net benefits over the present worth of all net costs d. All of the above statements are true.

When using a benefit-cost ratio (B/C) analysis to evaluate multiple alternatives, which of the following approaches is acceptable? a. Ranking approach only b. Incremental approach only c. Either incremental or ranking d. Neither incremental nor ranking

Identify two ways in which a contribution margin income statement differs in format from a traditional income statement. Which is more useful for decision making and why?

discuss the advantages and disadvantages of economic value added for performance measurement

Which of the following describes one aspect of incremental analysis? O Both costs and revenues that stay the same between alternate courses of action will be analyzed. O Only costs relating to the decisions at hand are analyzed. O All costs and revenues, regardless if they stay the same or differ between alternate courses of action, will be analyzed. O Both costs and revenues that differ between alternate courses of action will be analyzed.

Consider the following two statements concerning cost-volume-profit analysis. (1) The contribution per unit is the difference between the sales price per unit and the fixed costs per unit. (2) The marginal cost per unit will usually equal the variable cost per unit. Which one of the following combinations ( true/false) relating to the above statements is correct?

Explain the benefits of a Residual Income structure within an investment center framework.

Outline any problems you are aware of associated with the discounting of future costs and benefits in Cost Benefit Analysis.

Fixed costs, variable costs, and revenues are all included in profitability analysis? Select one: O True O False