Which of the Following Is True About Interval and Ratio

question 57

Multiple Choice

Which of the following is true about interval and ratio scales?

• A)in a ratio scale, a score of zero means the absence of the phenomenon being measured
• B)in an interval scale, it is not possible to achieve a score of zero
• C)equal intervals exist in interval scales, but such is not the case in ratio scales
• D)equal intervals exist in ratio scales, but such is not the case in interval scales

---

Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced by a business, such as rent, salaries, and loan payments.

Operating Risk

The possibility of experiencing financial losses due to factors affecting the day-to-day operations of a company.

EPS

Earnings Per Share; a key financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Breakeven Analysis

This analysis determines the point at which revenue equals costs, resulting in neither profit nor loss.