Consolidating Shipments Will Reduce Which of the Following Costs

question 29

Multiple Choice

Consolidating shipments will reduce which of the following costs?

• A) pickup and delivery
• B) terminal handling
• C) billing and collecting
• D) all of the above
• E) none of the above.

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Definitions:

Entity Approach

A method in accounting that treats a business as separate from its owners or stakeholders for reporting and evaluation purposes.

Consolidated Balance

A financial statement that presents the total assets, liabilities, and equity of a parent company and its subsidiaries as if they are a single entity.

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends, but are kept for reinvestment in the business or to pay off debt.

Useful Life

The estimated period over which a fixed asset is expected to be useful to the owning entity, beyond which it is considered to be no longer efficient for use.