When Projecting Operating Expenses,it Is Important to Determine the Mix

question 3

Multiple Choice

When projecting operating expenses,it is important to determine the mix of fixed and variable costs; one clue suggesting the presence of fixed costs is:

• A) the percentage change in cost of goods sold in prior years is significantly greater than the percentage change in sales.
• B) the percentage change in cost of goods sold in prior years is significantly less than the percentage change in sales.
• C) low capital intensity in the production process.
• D) the percentage change in sales in prior years is significantly greater than the percentage change in receivables.

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Definitions:

Narcissists

Individuals who regard themselves as better than others and are constantly trying to win the admiration of others.

Competent

having the necessary ability, knowledge, or skill to do something successfully.

Clinical Depression

A psychological condition marked by a consistent feeling of sadness or a lack of enjoyment in usual pursuits, leading to a considerable disruption in everyday functioning.

Self-esteem

One's subjective evaluation of their own worth, including feelings of confidence and competence.