Which Decision Will Involve No Incremental Revenues

question 27

Multiple Choice

Which decision will involve no incremental revenues?

• A)make-or-buy decision
• B)Drop a product line.
• C)Accept a special order.
• D)additional processing decision

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Definitions:

Bond Issue

The process of offering bonds for sale to investors by an issuer as a method of raising capital.

Discount

A reduction in the normal cost or price of a product or service, or the amount by which a bond is sold below its face value.

Amortization

The process of spreading the cost of an intangible asset over its useful life, thereby reflecting its consumption, depletion, or expense recognition over that period.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus accumulated depreciation.