Which One of the Following Statements Is True If a fiRm

question 266

Multiple Choice

Which one of the following statements is true if a firm is operating at less than full capacity?

• A) The EFN computed using the straight percentage method will be understated.
• B) The EFN computed using the straight percentage method will be accurate.
• C) The EFN computed using the percentage of sales approach will be understated.
• D) The EFN computed using the percentage of sales approach will be accurate.
• E) The EFN computed using the percentage of sales approach will be overstated.

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