The Earnings to Fixed Charges Ratio

question 40

Multiple Choice

The earnings to fixed charges ratio:

• A)indicates how efficiently assets are used.
• B)typically includes depreciation in the denominator.
• C)typically excludes extraordinary gains and losses from the numerator.
• D)indicates the proportion of debt used to finance a company.

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Definitions:

Service Level

The complement of the probability of a stockout.

Cost Of Waiting

The potential loss incurred by delaying decisions or actions, often used in queueing theory and service management.

Balk

The action taken by customers who decide not to enter a queue or a service system because it appears too long or slow.

Renege

In service systems, the action by which a customer decides to leave or abandon the queue before receiving service.