The Following Is a Useful Rule of Thumb When Making

question 32

Multiple Choice

The following is a useful rule of thumb when making operational decisions.Managers should NOT use ________.

• A) variable cost per unit
• B) total variable costs
• C) fixed cost per unit
• D) total fixed costs

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Definitions:

Voting Right

The entitlement of the shareholders of a company to vote on corporate policy, including decisions regarding the corporate board.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Authorized Stock

Authorized stock refers to the maximum number of shares that a corporation is legally authorized to issue according to its corporate charter.

Market Value

The present cost at which an asset or service is available for purchase or sale in a market.