In an economic downturn,a company could temporarily reduce or eliminate ________.
A) depreciation expense on corporate building
B) bond interest payment
C) property taxes on corporate building
D) advertising and promotion

Question

Quizplus · Accepted Answer

In an economic downturn, a company could temporarily reduce or eliminate advertising and promotion expenses as a way to cut costs. This allows the company to keep the focus on essential expenses and conserve cash while the business struggles through a difficult period. Reducing or eliminating advertising and promotion expenses is a common way that companies deal with a sluggish market, as it allows them to preserve other important assets and weather the economic storm. The other options, including depreciation expense on corporate building, bond interest payment, and property taxes on corporate building, are all fixed expenses that may be difficult to cut or eliminate temporarily.

In an Economic Downturn,a Company Could Temporarily Reduce or Eliminate