Which of the Following Are Examples of Cost Reductions That

question 27

Multiple Choice

Which of the following are examples of cost reductions that can result from an acquisition?
I.allocating fixed overhead across a wider range of products
II.lowering office payroll costs by combining job functions
III.benefiting from economies of scale when purchasing raw materials
IV.reducing the number of management personnel required

• A)I and III only
• B)II and IV only
• C)I, II, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

U.S. Dollar

The United States' official money, commonly utilized worldwide as a standard and reserve currency.

Depreciates

Describes how an asset loses value over time due to wear and tear, age, or obsolescence.

Current Account Transactions

Economic activities that affect a nation's balance of payments, including trade in goods and services, earnings on investments, and transfer payments.

International Financial Investments

Cross-border investment activities by individuals, companies, or governments aiming to benefit from returns offered in foreign markets.