____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow.
A)Life cycle costing
B)Profit margin analysis
C)Cost estimating
D)Cash flow analysis

Question

Quizplus · Accepted Answer

Cash flow analysis is a method used to determine the estimated annual costs and benefits for a project and the resulting annual cash flow. This analysis helps in understanding the cash inflows and outflows for each year of the project, making it easier to evaluate the financial feasibility of a project. Life cycle costing is a broader approach that considers costs and benefits over the entire life cycle of a project, not just annually. Profit margin analysis and cost estimating are different methods used for evaluating the profitability of a project or estimating the costs involved, respectively.

____ Is a Method for Determining the Estimated Annual Costs