In the Graph,X,Y,and Z Represent

question 36

Multiple Choice

In the graph,X,Y,and Z represent

• A)entrenchment,alignment,entrenchment.
• B)alignment,entrenchment,alignment.
• C)misalignment and alignment.
• D)agency costs of debt and equity.

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Definitions:

Direct Method

A method for allocating service department costs directly to producing departments without intermediate allocations among service departments.

Operating Activities

Activities that are directly related to the running of a business and the production of its goods and services, affecting the company's cash flow.

Direct Method

In financial accounting, refers to a way of allocating service department costs directly to producing departments without intermediate allocations.

Cash Basis

A bookkeeping practice in which income and outgoings are documented at the point of actual transaction, instead of when they are accrued.