Indicate whether the statement is true or false. In short-run decision making, the alternative w ith the lowest overall cost is always chosen. The benefit sacrificed when one alternative is chosen over another is called sunk cost. Projects that do not affect the cash flows of other projects are called mutually exclusive projects. The payback period considers the profitability of a project over its entire life span. 5. All SEC-registered firms must issue a statement of cash flows, in addition to the income statement and balance sheet. The indirect method of reporting the cash flow s from operating activities on the statement of cash flows is the method most widely used in practice. Companies in the same industries may use different accounting methods, diminishing the usefulness of some industrial averages. The quick ratio should be larger than the current ratio