What major assumption do multi-product firms need to make in using CVP analysis that single-product firms need not make?
The assumption that must be imposed is a constant sales mix. A multi-product firm assumes that (within the relevant range) the sales mix is constant. This permits CVP analysis to be performed using a unit of the constant sales mix.
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If bonds are issued at a discount, it means that the
a. bondholder will receive effectively less interest than the contractual rate of interest b. market interest rate is lower than the contractual interest rate c. market interest rate is higher than the contractual interest rate d. financial strength of the issuer is suspect
Which of the following environmental characteristics affects use of direct marketing in Europe?
A) the European Commission's concern about privacy B) high postal rates in several European countries C) industries in Europe are still developing complete mailing lists D) linguistic, cultural, and regional diversity E) all of the above
A challenge in integrating information systems is that the United States uses a 12-hour time notation with the addition of a.m. or p.m., while other parts of the world use a 24-hour notation.
Answer the following statement true (T) or false (F)
Waltz Company reported its accounts receivable turnover ratio at 10 times. Its credit terms are 2/10, n/30. What does this ratio tell you about Waltz Company?