Collectively, all costs such as distribution, marketing, and design are part of
A) downstream activities.
B) fixed costs.
C) the value chain.
D) manufacturing costs.
C
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When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at?
a. Sales price b. Net realizable value c. Historical cost d. Net realizable value reduced by a normal profit margin
The cost of equity for a firm is:
A) determined by directly observing the rate of return required by equity investors. B) based on estimates derived from financial models. C) equivalent to a leveraged firm's cost of capital. D) equal to the risk-free rate of return plus the market risk premium. E) equal to the risk-free rate of return plus the dividend growth rate.