An Indifference Curve Shows

question 168

Multiple Choice

An indifference curve shows

• A)various combinations of two goods that give the consumer the same amount of utility.
• B)the quantities of a good that give the consumer maximum utility when compared directly to price.
• C)the relationship between the price and quantity of a good that a consumer is able to purchase.
• D)the relationship between the quantity of a good and maximum utility.
• E)the relationship between total and marginal utility.

Evaluate the impact of reduced shipping and selling costs on transfer pricing.

Compare internal transfer pricing to external purchasing options.

Understand the concept of transfer pricing and factors influencing the minimum acceptable transfer price.

Recognize the importance and methods of allocating fixed and variable costs to operating departments for performance evaluation.

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Definitions:

Treynor Measures

Financial metrics used to assess the returns earned on a portfolio in excess of that which could have been earned on a risk-free investment, per each unit of market risk.

Sharpe Measure

A ratio developed by William F. Sharpe to measure risk-adjusted performance of an investment, calculating how much excess return you are receiving for the extra volatility that you endure for holding a riskier asset.

Dollar Weighted

A method of measuring investment returns which accounts for the size and timing of cash flows into and out of the portfolio.

Time Weighted

A method of calculating investment returns that eliminates the effects of cash inflows and outflows on the performance.