Which of the Following Is Not a Method Companies Use

question 116

Multiple Choice

Which of the following is not a method companies use to reduce their labor costs?

• A)Offshoring
• B)Outsourcing
• C)Contract negotiations
• D)Paying overtime so production can be finished early

Define opportunity cost and its significance in the decision-making process.

Understand the steps and critical considerations in the decision-making process.

Appreciate the role of accuracy, relevance, and timeliness in making the accounting information useful for decisions.

Understand the concept of sunk costs and their irrelevance in future decision-making.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Budgeted Amounts

Estimated financial figures planned for a certain period, including revenues and expenses.

Percent Differences

A measure representing the difference between two values as a percentage of one of the values.