A decision that occurs when managers evaluate a proposed capital investment to determine whether it meets some minimum criteria is a(n)

Question

Quizplus · Accepted Answer

This decision is a screening decision, which involves using a set of predetermined criteria to evaluate a proposal and determine if it should be further analyzed or rejected. Option A is incorrect, as a preference decision involves choosing between multiple options based on subjective factors. Option B is also incorrect, as a capital decision is a broader term that includes decisions related to financing and investments. Option D is incorrect, as incremental analysis involves comparing the costs and benefits of different options, and does not relate specifically to capital investment decisions.

A Decision That Occurs When Managers Evaluate a Proposed Capital