Which One of the Following Is Least Likely to Be

question 14

Multiple Choice

Which one of the following is least likely to be an agency problem?

• A)increasing the size of a firm
• B)concentrating on maximizing current profits
• C)closing a division with net losses
• D)increasing the market value of the firm's shares
• E)obtaining a patent for a new product

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Definitions:

FIFO Cost Flow

A method of inventory valuation where goods purchased first are the ones sold first, hence, the inventory left consists of the most recently purchased or produced goods.

Cost of Goods Sold

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Inventory Items

are goods or products that a business holds for the purpose of sale or production.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the profit a company makes after deducting the costs associated with making and selling its products or services.