Which of the Following Was NOT Associated with the Alaskan

question 31

Multiple Choice

Which of the following was NOT associated with the Alaskan earthquake of 1964?

• A) destruction of houses when a layer of weak clay liquefied
• B) landslides generated from steep mountainsides
• C) sinking of some downtown buildings by several meters
• D) a tsunami that killed people in Oregon and California
• E) a large strike-slip fault

Comprehend the concept of margin of safety, both in dollar terms and as a percentage of sales, and its importance in measuring financial risk.

Apply cost-volume-profit (CVP) analysis principles to make informed financial and operational decisions.

Understand and differentiate between variable, fixed, and mixed costs, including their behavior per unit and in total within the relevant range.

Evaluate the impact of sales volume changes on contribution margin and net income through the calculation of the degree of operating leverage.

---

Definitions:

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its earning capacity.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.

Straight-Line Depreciation

A process of dividing the expense of a substantial asset into identical annual portions over its useful duration.