Which of the Following Is Not an Example of a Decision

question 35

Multiple Choice

Which of the following is not an example of a decision that may require finance/accounting policies?

• A)To use LIFO,FIFO,or a market- value accounting approach
• B)To determine the amount of product diversification
• C)To extend the time of accounts receivable
• D)To establish a certain percentage discount on accounts within a specified period of time
• E)To lease or buy fixed assets

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Definitions:

Fixed Costs

Fixed expenses that are unaffected by production or sales volumes, encompassing costs like rent, employee salaries, and insurance fees.

Variable Costs

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Break-even Sales

The amount of revenue required to cover both the variable and fixed costs of production, leading to a situation where a business makes neither profit nor loss.

Variable Costs

Costs that vary directly with the level of production output.