Exhibit 19-2 the Following Information Relates to Bergen Corporation

question 19

Multiple Choice

Exhibit 19-2 The following information relates to Bergen Corporation:

-Refer to Exhibit 19-2. Based on the information above, the labor efficiency variance is:

• A) $1,000 unfavorable
• B) $1,000 favorable
• C) $800 unfavorable
• D) $800 favorable

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Definitions:

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by stockholder's equity, illustrating the degree of financial leverage used.

Times-Interest-Earned (TIE) Ratio

Determined by dividing earnings before interest and taxes by the interest charges. This ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated as total liabilities divided by total assets.

Mark To Market

An accounting method that measures the fair value of accounts that can fluctuate over time, such as assets and liabilities.