Which of the Following Is True of Cost Minimization

question 117

Multiple Choice

Which of the following is true of cost minimization?

• A)It is equivalent to profit maximization.
• B)It is sufficient for profit maximization.
• C)It is necessary for profit maximization.
• D)It is unrelated to profit maximization.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.

Discount

A reduction applied to the normal selling price of goods or services, typically for the purpose of enticing customers or accelerating sales.

Journal Entry

A record in accounting that represents a transaction or adjustment affecting at least two accounts, which is necessary to keep the financial statements accurate.