When a Company Discontinues a Segment,total Corporate Costs May Decrease

question 105

Multiple Choice

When a company discontinues a segment,total corporate costs may decrease in all of the following categories except

• A)variable production costs.
• B)allocated common costs.
• C)direct fixed costs.
• D)variable period costs.

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Definitions:

Insolvent

Insolvent refers to the inability of an individual or organization to meet its financial obligations as they become due, due to a lack of sufficient assets.

Reserve Requirements

Regulations set by the central bank determining the minimum amount of reserves each bank must hold against deposits.

Fed

The Federal Reserve System, which is the central banking system of the United States responsible for monetary policy.

Interest Rate

The interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.