Which One of the Following Is Not Typically Included Among

question 47

Multiple Choice

Which one of the following is not typically included among the three major components of a financial planning model?

• A) Inputs: current financial statements, forecasts of key variables
• B) Planning model: equations specifying key relationships
• C) Outputs: pro formas, financial ratios, sources and uses of cash
• D) Shareholders' risk preferences

Know the significance of a "true" zero in ratio-level measurement.

Understand the importance of measurement scales in attempting to quantify abstract concepts.

Recognize the significance of data categorization in research.

Understand the concept of post-formal thought and its characteristics.

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Definitions:

Equivalent Units

A concept in cost accounting used to equate units partially completed at the end of a period to units of finished goods.

Materials Cost

The total expense incurred by a company to purchase raw materials used in the production of goods or services.

Process Costing

A costing method used for homogeneous products, where costs are accumulated over a period and assigned to large numbers of identical units.

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost associated with a single unit of output, adjusting for partial completion of units in the production process.