The three elements of risk that help in understanding differences across firms and changes over time in ROAs are:
a. product life cycles, cyclicality of sales, competitive constraint.
b. operating leverage, cyclicality of sales, product life cycles.
c. cyclicality of sales, competitive constraint, operating leverage.
d. operating leverage, competitive constraint, product life cycles.
B
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Journalize the following transaction for a merchandiser that uses the perpetual inventory system. Sold goods for cash, $1,200 (cost $750). Omit explanations.
What will be an ideal response?
A company's proportion of fixed costs to variable costs is called its ________.
A) target profit B) relevant range C) mixed cost D) cost structure
A flexible budget is a summary of expected costs for a range of activity levels and is geared to changes in the level of productive output
Indicate whether the statement is true or false
In terms of costs to organize each, which of the following sequences is correct, moving from highest to lowest cost?
A) General partnership, sole proprietorship, limited partnership, corporation. B) Sole proprietorship, general partnership, limited partnership, corporation. C) Corporation, limited partnership, general partnership, sole proprietorship. D) Sole proprietorship, general partnership, corporation, limited partnership.