Which Is an Example of a Conservative Shift

question 154

Multiple Choice

Which is an example of a conservative shift?

• A)After reading an article about the economy in Business Week, Frank decided not to expand his small business.
• B)Because of the recession, the construction firm lowered its profit margin to get more of its bids accepted.
• C)Coach Smith decided to play it safe and kick a field goal rather than having the injured quarterback try a pass.
• D)Several board members were cautiously optimistic about the merger proposal before the meeting.During the board meeting, so many problems were cited that the proposal was unanimously defeated.
• E)The individual city councilors were moderately opposed to the expensive bond issue.During the council meeting, so many negative points were raised that the bond issue was soundly defeated.

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Definitions:

Net Operating Income

Represents the profit earned from a company's core business operations, excluding expenses and revenues from non-operating activities.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, typically used when the products being produced are sufficiently different from each other.

Work in Process Inventory

The total value of all partially completed goods or work that is not yet finished within a production process.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.