Which of the Following Is a Medium-Term Cost Adjustment That

question 117

Multiple Choice

Which of the following is a medium-term cost adjustment that an organization could consider to reduce costs?

• A)exit incentives
• B)hiring freeze
• C)mandatory vacation
• D)reduced overtime

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Definitions:

Contra-Asset

An account on a company's balance sheet that reduces the value of an asset, often used for accumulated depreciation.

Current Asset

Any asset that is expected to be converted into cash within one year or within the normal operating cycle of a business.

Expense

Costs incurred in the process of earning revenue, representing outflows of assets or incurrence of liabilities.

Administrative Expenses

Operating expenses such as general office expenses that are incurred indirectly in the selling of goods.