1. Which of the following is true while making a capital investment decision?

A. A manager should compute the competitor's return on investment.

B. A manager should ensure that the project cost is equal to the cash flow from investment.

C. All of these

D. A manager should ignore the timing of the cash flows.

E. A manager should assess the risk of the project.

2. Which of the following is not a major assumption of CVP analysis?

A. Sales mix is known with certainty for multiple-product break-even settings.

B. Selling prices and costs are known with certainty.

C. Linear revenue and cost functions remain constant over the relevant range.

D. All of these are major assumptions of CVP analysis.

E. All units produced are sold (no finished goods inventories).

55.000 54.000 Total Cost $3.000 Boots 200 300 1.000 600 Units Which of the following statements is NOT true about the scatterplot above? The data point for 850 units and $4,000 total cost is the most likely outlier For the high-low method, we should use the data points for 50 units and 900 units O We should not use a cost function derived from drawing a line over the scatterplot with a straightedge The cost behavior of the resource depicted is variable cost behavior