All Marketable Securities Are Considered to Be Short-Term Investments

question 59

True/False

All marketable securities are considered to be short-term investments.

---

Definitions:

Unused Capacity

The available but not utilized production ability of a company which could potentially generate revenue if employed.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product, calculated by dividing the total cost by the number of units.

Differential Cost

The difference in cost between two alternative decisions or scenarios.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered and should not affect future business decisions.