Which Is TRUE Regarding a Rating

question 110

Multiple Choice

Which is TRUE regarding a rating?

• A) It refers only to a numerical judgment that places a person or an attribute along a continuum.
• B) It refers only to a verbal judgment that places a person or an attribute along a continuum.
• C) It tends not to involve a judgment.
• D) It refers to either a numerical or a verbal judgment that places a person or an attribute along a continuum.

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Definitions:

Break-even Point

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials.

Fixed Costs

Expenditures that do not change over a short period of time, regardless of the level of production or activity.

Break-even Point

The financial point at which total costs and total sales are equal, resulting in no net loss or gain for the business.