[S1] On a CVP graph for a profitable company, the total expense line will be steeper than the total revenue line. [S2] The break-even point is the point where total contribution margin equals total fixed expenses. Only S1 is true. Only S2 is true. Both statements are true. Both statements are false.
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[S1] On a CVP graph for a profitable company, the total expense line will be steeper than the total revenue line. [S2] The break-even point is the point where total contribution margin equals total fixed expenses.
Only S1 is true.
Only S2 is true.
Both statements are true.
Both statements are false.
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- MODIFIED TRUE or FALSE. Write "T" if the given statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" explain, why is it true or false. Cite a theory, use a formula or graph to support your answers. 17. Other factors/determinants such as pests and diseases can affect largely the demand of the people for a specific good or service. 18. Price elasticity of either demand or supply measures the responsiveness of the quantity demanded or quantity supplied by buyers or sellers to changes in its own income 19. A perfectly inelastic demand exhibits a horizontal demand curve and n=∞. 20. A perfectly elastic supply exhibits a vertical supply curve and n=0. 21. In a monopolistic market, there are several suppliers in the market. 22. The given equation Q = 13 -0.25P is an example of a supply equation. 23. The formula to derive the elasticity of either for demand or supply is: O= _ x _ 24. Luxurious goods are considered inferior goods for minimum…Which one of the following is not considered an assumption of cost-volume-profit analysis? O a. Costs can be divided into variable and fixed components O b. Costs are linear O c. Selling price per unit does not change with volume O d. Fixed cost per unit is constant O e. Sales mix of products sold does not change Which of the following statements about operating leverage is false? O a. The degree of operating leverage is higher for companies with lower fixed costs O b. If the degree of operating leverage higher for a company, this means that the company is more risky than another company with low degree of operating leverage. of Fini: O c. Operating leverage measures how operating income will be affected by changes in sales O d. Keeping all factors constant, the higher the contribution margin, the higher the operating leverage. e. All of the given answers are true.Which of the following statements are true or false? 1.1 One of the objectives of purchasing and supply chain management is to maintain an optimum balance of inventory that would ensure the desired level of customer service while increasing costs. 1.2 Supply management has a major impact on the net income of the firm because it increases input costs and reduces sales revenue 1.3 The purchasing and supply function of a firm operates independently from the other enterprise functions. 1.4 Supply Management is the process of planning, organising, coordinating and controlling all the resources of the firm effectively and efficiently in order to attain the objectives of the firm as determined by management. 1.5 Strategic plans formulated at top management of purchasing and supply management are implemented or executed at top level management 1.6 In decentralized purchasing structures negotiating power is increased and volume discounts are made possible. 1.7 Steps of the strategic…
- Which of the following is a factor that would increase the risk of the misappropriation of assets for a large jewelry store? Managerial salaries with no bonus compensation. The nature of the store's merchandise. The use of standard retail sales practices. Adjusting merchandise value to the lower of cost or market.When performing sales mix analysis, which one of the following is false: O a. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product. O b. The sales mix is usually assumed to be remain the same. Oc. Making changes to the sales mix will likely cause a change in the breakeven point O d. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution marginWhich of the following statements is true? Increasing dividends will always decrease the stock price, because the firm is depleting internal funding resources. Increasing dividends will always increase the stock price. Increasing dividends may not always increase the stock price, because less earnings may be invested back into the firm and that impedes growth.
- (True, False) Stagflation happens when the economy is experiencing a bust and deflation. Stagflation occurs when the (AD, SR-AS) curve shifts to the (right, left). In the short-run, this shift would cause the overall price level to (increase, decrease) and output to (increase, decrease). Workers may see the short-run effect on the overall price level and negotiate for (higher, lower) wages, resulting in a price-wage spiral. Given that 1) output has (increased, declined) in the short-run, there is a (negative, positive, zero) output gap and that there is a (negative, positive, zero) cyclical unemployment, workers will eventually (accept, fight for) (higher, lower) wages. When this happens, the (AD, SR-AS, LR-AS) curve will shift to the |(right, left), reaching the long-run equilibrium.While financial managers must be concerned with obtaining and managing the funds of the business, they are not involved in auditing or managing the taxes of the firm. True or False True False 26 tv 28Which of the following ratios is INCORRECTLY defined? Seleccione una: a. TIE= EBIT/InterestExpense b. ROE=NetIncome/Equity c. Sales Growth=Sales-PreviousSales/PreviousSales d. Days Inventory= Inventory/AverageDailyCostOfGoodsSold e. ROA=(NetIncome+InterestExpense)/Assets
- The difference between expected payoff under certainty and expected payoff under risk is the expected: O A. value of perfect information OB. rate of return OC. monetary value D.net present value O E. profitWhich of the following is least likely a violation of Standard VI(B), Priority of Transactions? A Portfolio Manager: A) trades for her own account before her firm announces a change in a recommendation. B) trades for her son's trust account, which is not a firm account, on the day after her firm changes its buy/sell recommendation. C) takes a position for her own outside account in a stock one week after she published a buy recommendation for the stock.1. Once you have overdesigned your product, you need to do a ________ to match the needs and capabilities of your customers. 2. In 4-point bending, it has a higher probability that defects will exist due to a larger volume of a material subjected to a bending moment. True or false?