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17 Future costs that do not differ between the alternatives in a decision are avoidable costs. 18. It may be a good decision to replace an asset before its original cost has been fully recovered through increased revenues of decreased costs. 19. The payback method analyzes cash flows; however, it does not consider the time value of money. 20. The present value of an amount to be received in five years is exactly twice as large as the present value of an equal amount to be received in ten years. 21. Which of the following is not a benefit of budgeting? a. The budgeting process enables managers to uncover bottlenecks as they occur b. Budgets communicate management's plans throughout the organization C. Budgets define goals and objectives that can serve as benchmarks for evaluating subsequent performance 22. The system of accountability in which managers are held responsible for those items of revenue and costs and only those items-over which they can exert significant control is referred to as a. Budgeting b. Control c. Responsibility Accounting d. Self-Imposed Accounting . Which of the following explain why operating budgets generally span a period of one year? 4. Accounting regulations mandate that all operating budgets be prepared for one year companies choose a span of one year to correspond to their fiscal years 0. Operating budgets need to correspond with the calendar year

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