Question 3 (5 points) The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called absorption cost analysis O variable cost analysis O capital investment analysis O cost-volume-profit analysis Question 4 (5 points) The primary advantages of the average rate of return method are its ease of computation and the fact that O it is especially useful to managers whose primary concern is liquidity there is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short term Oit emphasizes the amethy of income earned over the life of the proposal O rankings of proposals are necessary Question 5 (5 points) Which of the following is a method of analyzing capital investment proposals that ignores present value? internal rate of return Onet present value discounted cash flow O average rate of return Question 6 (5 points) Decisions to install new equipment, replace old equipment, and purchase or construct a new building are examples of Osales mix analysis variable cost analysis O capital investment analysis fixed cost analysis