A Manager Calculated That Her Attainable Product Cost for an Accounting

question 5

Multiple Choice

A manager calculated that her attainable product cost for an accounting period was $29,000. Her actual product cost for the period was $29,580. What was the manager's operational efficiency ratio for this period?

• A) 92%
• B) 94%
• C) 102%
• D) 104%

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Definitions:

Exports

Goods or services sent from one country to another country for sale or trade.

Excise Tax

A tax on the production, sale, or consumption of a particular good or service.

Ability-To-Pay Principle

A tax principle that suggests taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.

Revenue

The cumulative revenue produced from transactions involving the main business activities, such as selling goods or services.