POBF Unit 4.00 LAPs

Which of the following might result if a company had good sales but ignored expenses:

• Increased profit

• Business failure

• Inventory loss

• Reduced overhead

Which of the following is a reason why businesses try to control expenses to purchase the most modern equipment

• To spend excess cash

• To remain competitive

• To satisfy suppliers

• To offer good benefits

Businesses that are unable to afford regular maintenance because of overspending run the risk of needing to

• hire new employees

• extend working hours.

• make costly repairs.

• order more inventory.

Businesses often use the money saved by controlling expenses to increase sales through

• management.

• price fixing.

• promotion.

• recruitment.

Businesses that buy goods for resale can control their expenses by

• expanding their product lines

• increasing their inventory levels.

• taking advantage of cash discounts.

• buying additional insurance coverage.

Which of the following is one of the biggest expenses that employees can help a business to control:

• Taxes

• Advertising

• Rent

• Payroll

Which of the following is a way that employees can help to control expenses by managing their work:

• Reading magazines

• Taking long breaks

• Leaving early

• Meeting deadlines

One of the ways employees can help businesses to control their utility costs is by

• managing their time.

• marking products accurately.

• turning off lights.

• treating customers well.

Employees who serve customers efficiently help to control expenses by

• decreasing volume.

• increasing returns.

• improving morale.

• reducing complaints.

Employees who pay attention to what is going on around them often are able to help businesses control expenses by

• keeping records.

• checking schedules.

• reporting theft.

• asking questions.