Which of the Following Will Not Increase the Opportunity for Internal

question 16

Multiple Choice

Which of the following will not increase the opportunity for internal financing of capital?

• A)Improved banking facilities.
• B)Saving incentives.
• C)Seizing of private banks by the government.
• D)Transparent capital markets.

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Definitions:

Period Cost

Costs that are taken directly to the income statement as an expense in the period in which they are incurred, not directly tied to the production of inventory.

Fixed Manufacturing Cost

Costs that remain constant regardless of production volume, including fixed overheads like lease payments, wages for full-time staff, and reduction in value of manufacturing machinery.

Long-Term Prices

Prices or rates expected to remain stable or predictable over an extended period, often relating to commodities or financial assets.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.