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答案和详解如下!

Question 74

Which of the following categories of capital budgeting projects requires the least amount of detailed analysis?

A)    Replacement projects that will lead to cost reductions.

B)   Projects that involve a new product or a new market.

C)   Replacement projects that maintain the existing business.

D)   Expansion projects.

 

The correct answer was C) Replacement projects that maintain the existing business.

Replacement projects that maintain the business are normally made without much detailed analysis. The main issue that must be considered is whether existing operations should continue. If the answer is yes, management must decide whether existing procedures or processes should be maintained.

This question tested from Session 11, Reading 44, LOS a

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