To Focus on the Facts That Make a Difference in Their

question 116

Multiple Choice

To focus on the facts that make a difference in their decisions, managers need to know how to eliminate

• A)avoidable costs.
• B)non-value added activities.
• C)irrelevant information.
• D)relevant information.

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Definitions:

Financial Intermediary

An institution that acts as a middleman between investors and borrowers, helping to channel funds from those with excess money to those in need of funds.

Resale Proceeds

The amount of money received from selling an asset that was previously purchased.

Price-Earnings Ratio

A valuation measure comparing the current share price of a company to its per-share earnings, used to evaluate if a stock is over or undervalued.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.