Which of the Following Results Is Due to the Greater

question 54

Multiple Choice

Which of the following results is due to the greater concentration of ownership in non-U.S. firms?

• A) The greater concentration of ownership in non-U.S. firms makes it easy to change managers.
• B) The greater concentration of ownership in non-U.S. firms permits greater monitoring and control by individuals or groups.
• C) The greater concentration of ownership in non-U.S. firms results in difficult access to credit in times of financial difficulty.
• D) The greater concentration of ownership in non-U.S. firms results in greater focus of managers on short-term goals of the firm.
• E) The greater concentration of ownership in non-U.S. firms results in reduced involvement of stockholders in the firms' daily operations.

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Definitions:

Absorption Costing

A financial recording technique that incorporates all expenses related to production, such as direct materials, direct labor, and variable as well as fixed manufacturing overhead costs, into the product's cost.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) assigned to a single unit of product.

Segment CM Ratio

The ratio of a business segment's contribution margin to its sales, indicating the profitability and efficiency of that segment.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific department or product.