In a proposal to increase the production of clock radios, the sales managers of Rinaldo Electronics reported the total additional cost required to meet the increased production level. The increase in total cost is known as the
a. opportunity cost.
b. out-of-pocket cost.
c. controllable cost.
d. incremental cost.
D
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Financialization is a phenomenon that can largely be explained by banking regulations, corporate governance rules, and private equity rules.
Answer the following statement true (T) or false (F)
If assets increase $500 and liabilities decrease $200 during the period, owner's equity will:
a. increase $500. b. increase $400. c. decrease $700. d. decrease $600. e. increase $700.
The employee union at Top Tech Toys decides to go on strike. Their strike will be legal if
a. the strikers form a picket line. b. the strikers form a massed barrier and deny management and nonunion workers access to Top Tech Toys' plant. c. the strikers stay in Top Tech Toys' plant without working. d. the strikers violently attack management.
The after-tax cost of equity equals one minus the marginal tax rate times the required rate of return
on common stock. Indicate whether the statement is true or false