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Q: When determining the cash flows for a proposed investment, we generally ignore overhead. Many overhead costs are fixed and will be paid whether the project is accepted or not, so they are not
incremental. Which item on the following list, though similar to overhead, would be included as an incremental cash flow? (Points : 1) the cost of a new managerial position specifically for a proposed project the allocation of factory floor space by square feet or square meters utilized by a proposed project the allocation of time that salaried managers used developing a proposed project the allocation of headquarters rent or lease expense based on anticipated revenue of a proposed project
A: When determining the cash flows for a proposed investment, we generally ignore overhead. Many overhead costs are fixed and will be paid whether the project is accepted or not, so they are not incremental. [ Which item on the following list, though similar to overhead, would be included as an incremental cash flow?Answer: the cost of a new managerial position specifically for a proposed project
]
Expert answered|petitemonde|Points 130|
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Asked 7/14/2013 9:49:13 AM
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