The Failure to Disclose Relevant Information About a Product or Service

question 94

True/False

The failure to disclose relevant information about a product or service would be withholding information or giving a false impression.

---

Definitions:

CM Ratio

Contribution margin ratio, showing the portion of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Units

A measure of quantity for items that are being produced, sold, or inventoried by a company.

Target Profit

The profit a company aims to achieve for a specific period.