A Company Is Considering the Following Alternatives Which of the Following Are Relevant in Choosing Between the c

question 8

Multiple Choice

A company is considering the following alternatives: $$\begin{array} { l c c c } & \text { Alternative 1 } & & \text { Alternative 2 } \\\hline \text { Revenues } & \$ 120,000 & & \$ 120,000 \\\text { Variable costs } & 60,000 & & 70,000 \\\text { Fixed costs } & 35,000 & & 35,000\end{array}$$ Which of the following are relevant in choosing between the alternatives?

• A)Variable costs
• B)Revenues
• C)Fixed costs
• D)Variable costs and fixed costs

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Definitions:

Total Return

The overall financial gain or loss on an investment, accounting for both capital gains, dividends, and interest income.

Control Of The Firm

The concept referring to who holds significant decision-making power in a company, usually the board of directors or shareholders.

Dual

Pertaining to or involving two parts, elements, or aspects.

Stock Classes

Different types of shares that a company can issue, each of which might have specific rights, privileges, or voting powers.