Question

What characterizes Replacement Projects?

a.

Long-term investments for capacity building

b.

Simplified and easier capital budgeting

c.

Compliance with statutory requirements

d.

Aimed at reducing production costs and increasing volume

Posted under IC 89 Management Accounting

Answer: (b).Simplified and easier capital budgeting Explanation:Replacement Projects involve long-term investment, and their capital budgeting is comparatively simpler and easier. They are aimed at reducing production costs and/or increasing the volume of production.

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Q. What characterizes Replacement Projects?
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