Expected Costs and Rewards Are

question 55

Multiple Choice

Expected costs and rewards are

• A) ideals about how rewarding a relationship should be relative to its costs.
• B) the total costs and rewards of a relationship at present.
• C) the costs and rewards of a relationship that someone assumes will occur.
• D) the total costs and rewards for the duration of the relationship.

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or product to change, such as production volume or raw material prices.

Support Department Cost

Expenses related to the functions that assist the direct operations or production departments of a business, such as human resources or maintenance.

Return on Investment

A metric for assessing the effectiveness or gains of an investment, determined by dividing the net earnings by the investment's expense.

Minimum Return on Investment

The least amount of profit expected from an investment, below which an investment is not considered acceptable.