(Appendix 6A)If a Cost Object Such as a Product or Customer

question 16

Multiple Choice

(Appendix 6A) If a cost object such as a product or customer has a negative green margin, then:

• A)its yellow margin will be positive.
• B)its yellow margin may be either positive or negative.
• C)its yellow margin will be negative.
• D)its yellow margin will be zero.

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Definitions:

IBM Stock

Refers to the equity shares of International Business Machines Corporation, traded publicly on stock exchanges.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by future actions.

MBA Classes

Advanced business courses aimed at professionals and students seeking a Master of Business Administration degree.

Marketing Cost

Expenses associated with promoting and selling a product or service, including advertising, market research, and distribution costs.