What Is Typically an Organization's Largest Controllable Cost

question 36

Multiple Choice

What is typically an organization's largest controllable cost?

• A) technological costs
• B) capital costs
• C) labour costs
• D) benefits costs

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Definitions:

Bond Interest

The periodic payment made to bond investors, representing the interest earned on the bond's face value.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or the repayment of a loan over time through scheduled payments.

Bond Discount

The gap between what a bond is worth (its face value) and the lower amount it is sold for in the market.

Amortization Methods

Various techniques used to gradually write off the initial cost of an intangible asset over a period.