Which of the Following Will Probably Not Be a Result

question 45

Multiple Choice

Which of the following will probably not be a result if a company's liquidity is poor?

• A)Workers will quit if they are not paid on time.
• B)Debt or Equity will exceed the company's maximum allowed amount.
• C)Banks may not loan the company funds.
• D)Customers will seek other sources of goods when the company's product is not available.

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Definitions:

Product Cost

The total expense incurred to produce and deliver a product or service, including materials, labor, and overhead costs.

Period Cost

Costs incurred that do not directly relate to the production of goods, such as sales and administrative expenses.

Salespersons' Commissions

This refers to the payment made to sales staff based on a percentage of the sales they generate, as a form of incentive and reward.

Product Cost

The total expenditure incurred to produce, acquire, and sell products, including direct materials, direct labor, and overhead.