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Nielson Motors has no debt,and maintains a policy of holding $80 million in excess cash reserves,invested in risk free treasury securities currently yielding 3%.If Nielson is in the 35% marginal tax bracket,the cost of permanently maintaining this $80 million reserve is closest to:
Activity-based Costing
A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.
Activity Cost Pools
Aggregations of all the costs associated with particular activities, used in activity-based costing to allocate costs more accurately.
Activity Measures
Metrics used to assess the efficiency and performance of different business activities, often in the context of activity-based costing.
Overhead Costs
Expenses not directly tied to the production of goods or services, such as rent, utilities, and insurance.
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