Which One of the Statements About a Responsibility Report Is

question 45

Multiple Choice

Which one of the statements about a responsibility report is correct?

• A)It contains controllable and non-controllable costs.
• B)It compares actual costs with static budget data.
• C)A distinction is made between variable and fixed costs.
• D)It is used to evaluate investment centres, but not cost or profit centres.

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Definitions:

Marginal Tax Rate

A rephrasing: The portion of tax applied to your income for each additional dollar you earn.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment, considering its risk level.

Preferred Shares

A type of stock that provides holders with a fixed dividend, which must be paid before dividends are paid to ordinary shareholders.

Floatation Costs

The costs that a company incurs when it issues new securities, including underwriting fees, legal fees, and registration fees.