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When You Got Home After Work,you Saw on the News

question 11

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When you got home after work,you saw on the news that the S&P was down by 20 points.Which of the following is true?


Definitions:

Salvage Value

An estimate of an asset’s value at the end of its useful life.

Incremental Analysis

The process of identifying the financial data that change under alternative courses of action.

Variable Costs

Costs that vary in total directly and proportionately with changes in the activity level.

Fixed Costs

Costs that remain the same in total regardless of changes in the activity level.

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