In Bankruptcy Prediction Analysis,a Type ____________________ Error Is Classifying a Firm

question 38

Short Answer

In bankruptcy prediction analysis,a type ____________________ error is classifying a firm as nonbankrupt when it ultimately goes bankrupt.

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Definitions:

Net Sales

This refers to the total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.