Refer to Scenario: ConocoPhillips

question 41

Multiple Choice

Refer to Scenario: ConocoPhillips.Which of the following is a short-term cost adjustment that ConocoPhillips is implementing to reduce costs?

• A)exit incentives
• B)exploration work shutdowns
• C)extending reductions in salary
• D)voluntary sabbaticals

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Definitions:

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to generate revenue.

Exchange Of Plant Assets

Transactions involving the swap of fixed assets, such as machinery or buildings, between entities, often due to operational needs or upgrades.

Commercial Substance

A concept in accounting indicating that a transaction has caused a significant change in the economic circumstances of a business.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its life.