Cyber Monday 2023! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: CM25OFF
Welcome to Pass4Success

- Free Preparation Discussions

IMANET Exam CMA Topic 6 Question 32 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 32
Topic #: 6
[All Certified Management Accountant Questions]

Of the following decisions, capital budgeting techniques would least likely be used in evaluating the

Show Suggested Answer Hide Answer
Suggested Answer: D

Capital budgeting is the process of planning expenditures for investments on which the returns are expected to occur over a period of more than 1 year. Thus, capital budgeting concerns the acquisition or disposal of long-term assets and the financing ramifications of such decisions. The adoption of a new method of allocating, nontraceable costs to product lines has no effect on a company's cash cows, does not concern the acquisition of long- term asset and is not concerned with financing Hence, capital budgeting is irrelevant to such a decision.


Currently there are no comments in this discussion, be the first to comment!

Save Cancel