Marginal analysis states that financial decisions should be made and actions should be taken only when ________
A) marginal revenue equals marginal cost
B) benefits equal costs
C) added benefits exceed added costs
D) added benefits are greater than zero
C
You might also like to view...
What should a company do to improve its accounts receivable turnover rate?
a. Lower its selling prices. b. Increase its sales force. c. Give customers credit terms of 2/10, n/30 rather than 1/10, n/30. d. Reduce the number of employees working in the credit department.
Which one of the following statements is true?
A) If a plant asset is self-constructed for less than it would cost to purchase, a profit should be recorded upon the completion of the construction. B) When property, plant, or equipment is acquired through donation, no entry is recorded. C) Development stage enterprises need not report losses before sales are made. D) Interest cannot be capitalized if a loan is taken when an asset is substantially complete and ready for its intended use.
Indicate whether each of the following statements is true or false.Estimated cost data must often be used in making decisions because actual cost information is not yet available. Managers often accumulate both estimated and actual cost data for the same cost object. A direct cost must be allocated to a cost object. For a department in a retail store, cost of goods sold is a direct cost. Determining whether a cost is direct or indirect depends on the selection of cost object.
What will be an ideal response?
The selling team should most likely be prepared to:
A) deal with buyers that have well-developed negotiation skills B) give concessions quickly to show good will to the buyers C) settle most of the points of contention right away D) revalue the microscope to make the sale E) stick to the most important consideration: price