Top Management Teams

question 34

Multiple Choice

Top management teams

• A)usually make better decisions as a group than the CEO could make alone.
• B)may include middle managers.
• C)may include members of the board of directors.
• D)All of the above.

Apply the concept of opportunity cost accurately in various scenarios.

Recognize the differences between accounting costs and economic costs.

Identify and calculate average, marginal, average fixed, and average variable costs.

Determine the impact of external factors such as taxes and technology on opportunity costs.

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Definitions:

Operating Income

It's the profit realized from a business's core operations, excluding deductions of interest and taxes.

Prepaid Rent

Rent payments made in advance of the rental period.

Adjusting Entry

A log entry in accounting made to refresh the balances of accounts upon the closure of an accounting period.

Rent Expense

Rent expense is the cost incurred by a business or individual for the use of property or equipment leased from another entity.