The price associated with a resource that indicates how much more profit would be earned by increasing the amount of the resource by one unit is called ______.
a. final cost
b. reduced cost
c. shadow price
d. single price
c. shadow price
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The write-off of the cost of intangible long-term assets is called depletion
Indicate whether the statement is true or false
How are cash equivalents treated on a statement of cash flows?
A) They are disclosed in the operating activities section. B) They are combined with the Cash account. C) They are disclosed in the investing activities section. D) They are disclosed in the financing activities section.
Fourlotts Inc. is a renowned technological firm. It manages many strategic business units (SBUs) in which each SBU:
A. has its own return on investment. B. shares the same goals and employs the same strategies as Fourlotts Inc. C. plans collaboratively with Fourlotts Inc.'s other SBUs. D. refrains from performing manufacturing functions.
Costs that vary in total in direct proportion to changes in an activity level are called:
A) fixed costs B) sunk costs C) variable costs D) differential costs