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A second disadvantage of that method is that it lacks a clearly defined:
AAccounting standard
BAuditing schedule
CAdvance payment
DAcceptance criterion
Answer & Solution
Correct answer: D. Acceptance criterion
1. Firms set their own cut-off length.
2. No rule says what length is right.
3. It lacks a clear acceptance criterion.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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