(Appendix 5A)Which of the following best describes a cost object,such as a product or customer,that has a negative red margin?
A) Its yellow margin will be positive.
B) Its yellow margin may be positive,negative,or zero.
C) Its yellow margin will be negative.
D) Its yellow margin will be zero.

Question

Quizplus · Accepted Answer

A negative red margin indicates that the cost object is not covering its direct costs. However, the yellow margin, which includes additional costs or revenues, can vary and may be positive, negative, or zero depending on other factors.

(Appendix 5A)Which of the Following Best Describes a Cost Object,such