As Projected Net Income Increases the

question 7

Multiple Choice

As projected net income increases the

• A)degree of operating leverage declines.
• B)margin of safety stays constant.
• C)break-even point goes down.
• D)contribution margin ratio goes up.

Grasp the concept and application of FIFO, LIFO, and weighted average inventory costing methods.

Recognize the start and control mechanisms of inventory management.

Understand the role of inventory controls in the accounting and financial reporting process.

Distinguish between perpetual and periodic inventory systems and their impact on financial statements.

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Definitions:

Pay-per-view

a television service in which viewers pay for each individual program they watch.

Marginal Revenue

The increase in revenue a business achieves through the sale of one extra item or service.

Cable TV

A method of providing TV programming to viewers through radio frequency signals sent via coaxial cables or through pulses of digital light.

Tuition Fees

Charges imposed by educational institutions for instruction and other services, a major component of the cost of higher education.