Which of the Following Is Based on Historical Numbers

question 70

Multiple Choice

Which of the following is based on historical numbers?

• A) Projected Earnings.
• B) Earnings per share.
• C) Price-earnings ratio.
• D) Both B and C.
• E) None of these.

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Definitions:

Noncumulative Quantity Discounts

Discounts that apply to a single order rather than the total volume of orders over a certain period, encouraging large individual purchases.

Cumulative Quantity Discounts

A pricing strategy where the price per unit decreases as the total quantity purchased over time increases.

Seasonal Discounts

Price reductions offered during specific times of the year to stimulate sales during slow periods.

Inventory

The quantity of goods or materials on hand that a business holds for the purpose of resale or production.