Political Maneuvering by Managers to Influence Resource and Capital Allocation

question 83

Multiple Choice

Political maneuvering by managers to influence resource and capital allocation can result in firm inefficiencies in a related-diversified firm.These costs are called:

• A) Fixed costs.
• B) Influence costs.
• C) Sunk costs.
• D) Opportunity costs.

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Definitions:

Net Method

A technique for accounting where discounts for early payment are assumed to be taken and recorded as such.

Returned Merchandise

Items that have been sold and subsequently returned by the customer to the seller due to defects, dissatisfaction, or other reasons.

Inventory Returns Estimated

An estimate of the value of goods that are anticipated to be returned by customers, used for accounting and inventory management purposes.

Sales Refund Payable

A liability account representing the amount that a company expects to refund to customers for returned products.