The Five Major Classes of Ratios Include the Following,except

question 78

Multiple Choice

The five major classes of ratios include the following,except

• A) Internal liquidity.
• B) Risk analysis.
• C) Growth analysis.
• D) Market performance.
• E) Operating performance.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales level at the break-even point, indicating the amount by which sales can drop before the company incurs a loss.

Unit Variable Expenses

Costs that vary directly with the volume of production or sales per unit.

Fixed Expenses

Costs that do not change with the level of production or sales volume, such as rent and salaries.

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.