A company would be reducing its discretionary costs if it
a. fired a production supervisor.
b. closed its research and development department.
c. successfully negotiated a reduction in its factory rent.
d. reduced its direct labor costs by hiring temporary workers.
B
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When a company does not have to charge sales tax, its sales journal can have a combined Debit and Credit column
Indicate whether the statement is true or false
Explain the concept of positioning for competitive advantage
What will be an ideal response?
Goodwill can be recorded as an asset when a(n):
A) business has above normal profitability compared to other businesses in its industry. B) business can determine that it has created customer goodwill and name recognition. C) offer is received to purchase the business at a price in excess of the value of the assets. D) business is purchased and payment is made in excess of the value of the net assets.
Assume a corporation has 4,000 shares of $60 par, $3 cumulative preferred stock. In year one, no dividend is declared. In year two, a $6,000 dividend is declared. In year three, a $40,000 dividend is declared. How large a dividend is set aside for the preferred stock in year three?
a. $36,000 b. $30,000 c. $18,000 d. $42,000 e. $38,000