The cash flows method, used by net present value method and internal rate of return are ___________?
Correct answer: B. discounted cash flows
- A. vertical cash flows
- B. discounted cash flows
- C. lean cash flows
- D. future cash flows
Explanation
NPV and IRR both evaluate investment projects by discounting future cash inflows and outflows to present value. They are therefore discounted cash-flow methods.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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