Although Wikis Have Become Popular Among Some Users, Major Companies

question 100

True/False

Although wikis have become popular among some users, major companies have yet to embrace them in the business world.

Interpret the significance of operating leverage and its effect on business profitability.

Analyze the effect of varying levels of sales on profit using cost-volume-profit (CVP) analysis.

Use scatter diagrams as a tool for analyzing past cost behaviors and estimating future costs.

Understand and apply the high-low method for estimating fixed and variable costs.

---

Definitions:

Return on Investment

A financial ratio used to calculate the profitability of an investment, representing the percentage return on the invested amount.

Markup

The difference between the cost of a product or service and its selling price, expressed as a percentage over the cost.

Absorption Costing

A calculation technique in which the cost of a product is determined by including all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed overhead costs.

Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price.