The Retrenchment Strategy That Calls for Selling Off Part of the Organization

question 14

Multiple Choice

The retrenchment strategy that calls for selling off part of the organization is called __________.

• A) liquidation
• B) downsizing
• C) diversification
• D) divestiture

Define the role of direct materials in activity-based costing.

Assess the factors influencing the choice of a cost driver in cost estimation.

Recognize the different classifications of costs in activity-based costing.

Evaluate the implications of volume changes on different types of costs.

---

Definitions:

Mercury

A chemical element with the symbol Hg and atomic number 80, known for its use in thermometers, fluorescent lighting, and dental amalgams.

Aneroid

Refers to a type of barometer that measures air pressure without using liquid.

Dehydration

A condition resulting from excessive loss of body water, affecting bodily functions.

Foley Catheter

A sterile tube inserted into the bladder to drain urine, commonly used in medical settings for patients who cannot urinate independently.