Answer the following statements true (T) or false (F)
1. Contribution margin lost from a decline in sales is an opportunity cost.
2. Additional power for operating machines, extra supplies, and added cleanup costs are
examples of incremental overhead costs.
3. Employee morale, timeliness of delivery, and the reactions of customers are examples of
nonfinancial factors that should be considered when making a managerial decision.
4. Costs already incurred in manufacturing the units of a product that do not meet quality
standards are relevant costs in a scrap or rework decision.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
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A possible unintended effect of business legislation is ________
A) restricting fair competition in the market B) encouraging unbridled business behavior C) reducing the social cost of producing a particular commodity D) exposing consumers to unfair trade practices E) slowing economic growth
Innkeepers have unlimited liability for loss or damage to goods left by a guest in a room
Indicate whether the statement is true or false
Boomerang is an excellent online survey tool. _________________________
Answer the following statement true (T) or false (F)
Which of the following is NOT true regarding common stock?
A) Common stock, unlike bond principal, does not mature. B) Dividends, unlike interest payments, are not tax deductible. C) Dividend payments, like interest payments, are fixed. D) Common stockholders are owners of the firm, whereas bondholders are creditors.