In terms of revenues and costs for a project, which of the statements below is FALSE?
A) Projected revenues and costs are estimates of future activity.
B) Estimates of revenues and costs begin with operating cash flow of the project.
C) Projected revenues and costs form the basis of the potential for a project's acceptance or rejection.
D) Estimates of revenues and costs begin with sales forecasts and the production costs associated with the sales forecast.
Answer: B
Explanation: B) Estimates of revenues and costs begin with SALES FORECASTS AND THE PRODUCTION COSTS associated with the sales forecast to arrive at the anticipated operating cash flow of the project.
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Companies perform aggregation along the three dimensions of:
A) products, labor, customers. B) time, suppliers, services. C) products / services, labor, time. D) time, products, customers.
The less-risky investment is always the more desirable choice
Indicate whether the statement is true or false