Which of the following is false when evaluating capital investments tied to a CSR objective?

A) CSR investment proposals cannot be analyzed with the typical managerial accounting methods used for other types of capital projects.
B) Companies may evaluate an investment using a qualitative approach rather than a traditional quantitative approach.
C) Companies may evaluate an investment considering the reduction of potential litigation risks.
D) Companies may evaluate an investment considering the possibility of opening new consumer markets with a sustainable product desired by consumers.

Question

Oscar Pante · Accepted Answer

Final Answer : A, Explanation :  CSR (Corporate Social Responsibility) investment proposals can indeed be analyzed using typical managerial accounting methods, alongside other qualitative and strategic considerations. These methods can be adapted to account for the broader impacts and benefits of CSR initiatives, such as brand enhancement, customer loyalty, and long-term sustainability.

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