The most appropriate method(s) for long term decisions:
A) Incorporate the time value of money
B) Is the payback method
C) Is the accounting rate of return method
D) Incorporates allocated costs

Question

Quizplus · Accepted Answer

Incorporating the time value of money is the most appropriate method for long term decisions as it takes into account the potential fluctuation in the value of money over time and provides a more accurate representation of the true cost and benefits of an investment over its lifetime. The other methods listed may be useful in certain situations, but do not take into account such factors as inflation and interest rates, which can greatly impact the success of a long term investment.

The Most Appropriate Method(s) for Long Term Decisions