Information Illustrating Projected Operating Results Based on Profit and Loss

question 3

Multiple Choice

Information illustrating projected operating results based on profit and loss can be found in the

• A) proforma balance sheet.
• B) proforma income statement.
• C) cash flow statement.
• D) break-even analysis.
• E) None of the above.

Assess the impact of changes in sales volume on net operating income.

Apply the concept of traceable fixed expenses and common fixed expenses in segment analysis.

Calculate segment margin for business segments.

Understand and apply the concept of break-even sales in segment analysis.

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Definitions:

Under-reward Inequity

A perception among employees that their rewards do not match the effort and contributions they have made, leading to dissatisfaction.

Outcomes-to-Inputs Ratio

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

Expectancy

A person’s belief that working hard will result in high task performance.

Desired Level

The specific goal or standard of achievement that individuals or groups aim to reach.