The Net Income Per Share Divided by the Market Price

question 84

Multiple Choice

The net income per share divided by the market price per share is called the:

• A)profit margin.
• B)profit yield.
• C)market yield.
• D)earnings yield.
• E)income ratio.

Understand the concepts of sunk costs, opportunity costs, differential costs, and how they differ from one another.

Recognize the limitations of traditional income statements for internal decision-making purposes.

Understand how committed fixed costs behave in the short run and their impact on cost management.

Understand the different classifications of costs including direct and indirect costs, and their implications on financial statements.

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