Which One of the Following Is NOT a Real Option

question 8

Multiple Choice

Which one of the following is NOT a real option?

• A) The option to expand production if the product is successful.
• B) The option to buy shares of stock if its price is expected to increase.
• C) The option to expand into a new geographic region.
• D) The option to abandon a project if cash flows turn out to be lower than expected.
• E) The option to switch the type of fuel used in an industrial furnace to lower the cost of production.

Recognize various types of transactions and their impact on bank reconciliation.

Know the importance and use of electronic transactions in business.

Understand the principles of internal control and how they protect the organization.

Ability to identify and explain documents and procedures in managing cash and cash equivalents.

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Definitions:

Total Expenses

The sum of all costs and expenditures that a business incurs during a given period, including operating expenses, cost of goods sold, and other charges.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing better comparisons and analysis of performance.

Employee Salaries

Regular payments made by an employer to an employee, typically on a monthly or biweekly basis, in exchange for the employee's work.