Question

How are the benefits of a project compared in capital budgeting?

a.

Comparing short-term profitability

b.

Comparing current asset benefits

c.

Comparing total cost of financing

d.

Comparing benefits with the total cost of financing

Posted under IC 89 Management Accounting

Answer: (d).Comparing benefits with the total cost of financing Explanation:In capital budgeting, the benefits of a project have to be compared with the total cost of financing the same.

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Q. How are the benefits of a project compared in capital budgeting?
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