If a Company Increases the Selling Price of the Product

question 177

Multiple Choice

If a company increases the selling price of the product it sells and all other data on the financial statements remains the same,which of the following ratios will be unaffected?

• A)Fixed asset turnover
• B)Net profit margin
• C)Inventory turnover
• D)Earnings per share

---

Definitions:

Attribution

A cognitive process by which individuals infer the causes of their own and others’ behavior.

Schema

Schema refers to a cognitive framework or concept that helps organize and interpret information, based on one’s accumulated knowledge and experience.

Attributional Model

A psychological framework that explains how individuals infer causes of behavior, focusing on internal versus external attributions.

External-Unstable Attribution

Attributing one's behavior or outcomes to external, transient factors outside one's control.