Which of the Following Is Considered a Direct Cost of Bankruptcy

question 38

Multiple Choice

Which of the following is considered a direct cost of bankruptcy?

• A) diversion of management's time
• B) constrained capital investment spending
• C) lost sales
• D) none of the above

Apply critical thinking skills in personal and academic contexts.

Recognize the value and process of setting goals and developing a personal mission statement.

Understand the role of different intelligences in learning and personal development.

Appreciate the benefits of working effectively in diverse teams.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity.

Food

Any nutritious substance that people or animals eat or drink or that plants absorb to maintain life and growth.

Supplies

Items used in the operations of a business, usually not directly part of the finished product but necessary for production or administrative tasks.

Spending Variance

The difference between the actual amount of money spent and the budgeted or expected amount in cost accounting, often related to manufacturing costs.