Podcast
Questions and Answers
What do sunk costs refer to?
What do sunk costs refer to?
- Costs incurred before appraisal and are irrecoverable (correct)
- Costs related to the operation of a project
- Costs that vary with the volume of the product
- Components of pre-operative expenses
What does depreciation measure?
What does depreciation measure?
- The loss of value of an asset arising from the passage of time (correct)
- The cost of materials, labor, and factory overhead
- The financial requirement needed to finance the current asset of the balance sheet
- The fees paid to technical consultants and engineers
What are direct costs in the context of project operation?
What are direct costs in the context of project operation?
- Costs that do not vary with the volume of the product
- Costs directly attributable to the production (correct)
- Costs that vary with the volume of the product
- Costs incurred for procuring office equipment
What does the cost of production include?
What does the cost of production include?
What is working capital?
What is working capital?
What are examples of costs irrelevant for project decisions?
What are examples of costs irrelevant for project decisions?
What is the measure of the loss of value of an asset arising from the passage of time?
What is the measure of the loss of value of an asset arising from the passage of time?
Which costs are directly attributable to the production?
Which costs are directly attributable to the production?
What does pre-operative expenses include?
What does pre-operative expenses include?
What are miscellaneous fixed assets?
What are miscellaneous fixed assets?
What is the purpose of conducting project appraisal?
What is the purpose of conducting project appraisal?
What does financial analysis of projects involve?
What does financial analysis of projects involve?
What does 'The Costs of a Project' refer to?
What does 'The Costs of a Project' refer to?
What does 'Land and Site Development' costs include?
What does 'Land and Site Development' costs include?
Which component is considered the most significant in project cost?
Which component is considered the most significant in project cost?
What is the focus of environmental analysis in financial project appraisal?
What is the focus of environmental analysis in financial project appraisal?
What is the purpose of conducting project appraisal?
What is the purpose of conducting project appraisal?
What type of information is collected during financial analysis of projects?
What type of information is collected during financial analysis of projects?
What does the total costs of a project include?
What does the total costs of a project include?
Which component of a project's cost is considered the most significant?
Which component of a project's cost is considered the most significant?
What is included in the costs relevant to the initial investment of a project?
What is included in the costs relevant to the initial investment of a project?
What is the benefit of conducting appraisal during project planning?
What is the benefit of conducting appraisal during project planning?
