Which of the Following Would NOT Lead to Cost Savings

question 55

Multiple Choice

Which of the following would NOT lead to cost savings?

• A) A company that sets up its own direct sales force
• B) A company that eliminates low-value-added work steps
• C) A company that motivates employees through incentives
• D) A company that conducts sales operations at its website
• E) A company that sources the best from suppliers across the world

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Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate, representing its legal value.

Bond Issue

The process of offering bonds to investors as a method of securing capital.

Bond Amortization

The gradual reduction of the bond discount or premium over the life of the bond, affecting the bond's book value and interest expense calculations.

Effective-Interest Method

A method of calculating the amortized cost of a bond or loan by applying the effective interest rate to the outstanding balance at each period.