Which of the following cash flows should not be treated as relevant incremental flows when deciding whether to go ahead with production of a new model of mobile phone? I. The resulting reduction in the sales of the company’s existing models II. Falls in sales of phones made by competitors III. Additional sales of related items such as phone covers and electric leads IV. The cost of market research undertaken during the past five years V. Changes in working capital arising from proceeding with the new phone a I and II only b II and IV only c II and III only d I and V e All five should be treated as relevant cash flows

Which of the following cash flows should not be treated as relevant incremental flows when deciding whether to go ahead with production of a new model of mobile phone? I. The resulting reduction in the sales of the company’s existing models II. Falls in sales of phones made by competitors III. Additional sales of related items such as phone covers and electric leads IV. The cost of market research undertaken during the past five years V. Changes in working capital arising from proceeding with the new phone a I and II only b II and IV only c II and III only d I and V e All five should be treated as relevant cash flows

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 44P

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