The Increased Use of Automation and Less Use of the Work

question 144

Multiple Choice

The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

• A) both variable and fixed costs.
• B) fixed costs and a decrease in variable costs.
• C) variable costs and a decrease in fixed costs.
• D) variable costs and no change in fixed costs.

---

Definitions:

Cost Method

An accounting approach where the investment is recorded at its purchase cost without reflecting market value changes.

Carrying Value

Also known as book value, it's the amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation or amortization.

Dividend Distributions

Dividend distributions are payments made by a corporation to its shareholders, usually derived from the company’s earnings, representing a portion of the profits.

Investee

An entity in which an investor holds an interest, where the investor has significant influence but not full control or ownership.