Cost Ratios Are One of the Five Basic Categories of Ratios

question 194

True/False

Cost ratios are one of the five basic categories of ratios.

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Definitions:

Management Accounting

The accounting system used within the organization to help the organization achieve its goals.

Financial Accounting

Accounting for the revenues, expenses, assets, liabilities, and equities of an organization, concentrating on external users (shareholders, lenders, and government). Constrained by FASB rulings and other generally accepted accounting principles.

Tax Purposes

The reasons or objectives related to the calculation and payment of taxes to comply with legal requirements.

Shareholders' Wealth

The total value of a company to its shareholders; typically measured by market capitalization or the value of shares held.