The 85:15 Ratio

question 26

Multiple Choice

The 85:15 ratio

• A)compares the income of household at the 85^th percentile with the income of households at the 15^th percentile and provides a coefficient of comparison
• B)compares the income of household at the 15^th percentile with the income of households at the 85^th percentile and provides an index of income comparison
• C)compares the income of household at the 85^th percentile with the income of households at the 15^th percentile and provides a multiplier for income
• D)compares the income of household at the 15^th percentile with the income of households at the 85^th percentile and provides a margin of income growth

Utilize the high-low method to estimate variable and fixed components of costs.

Interpret and use profit-volume (PV) charts and margin of safety for business analysis.

Understand the concept of the relevant range and its impact on cost behavior.

Comprehend how different types of charts (e.g., Profit-volume chart, Cost-volume-profit chart) are used in managing operations and making financial decisions.