Match the Terms with the Definitions

question 28

Multiple Choice

Match the terms with the definitions.
-A comparison of the amounts for the same item in the financial statements of two or more periods.

• A)profitability measures
• B)operating income ratio
• C)cost of goods sold ratio
• D)ratio of liabilities to stockholders' equity
• E)return on total assets
• F)ratio of net sales to assets
• G)horizontal analysis
• H)leverage
• I)net income ratio
• J)liquidity
• K)liquidity measures
• L)merchandise inventory turnover

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Definitions:

Activity Rate

The predetermined overhead rate used to allocate overhead costs based on specific activities or cost drivers.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that consume resources.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.

Production Orders

Instructions or commands to start the manufacture of a certain quantity of a product within a specified timeframe.