A Six-Step Program That Can Guide Supervisors to Reduce Costs

question 7

Multiple Choice

A six-step program that can guide supervisors to reduce costs in their department includes the following EXCEPT ________.

• A)improve methods
• B)invest in employee training
• C)minimize waste
• D)make across-the-board cuts
• E)level the work flow

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Definitions:

Sam, Capital

An account representing the owner's (Sam's) equity or ownership interest in a business.

Profit and Loss Ratio

An indicator that measures the ratio of profits earned to losses incurred over a particular period, often used to assess a company's financial health.

Income Summary

A temporary account in the ledger that summarizes revenue and expenses and transfers the balance (net income or net loss) to Capital. This account does not have a normal balance, i.e. it could have a debit or a credit balance.

Capital Balances

The amounts recorded in the capital accounts of a company or partnership, reflecting the initial capital contributions and subsequent changes including profits earned and withdrawals.