Which of the Following Statements Is CORRECT

question 36

Multiple Choice

Which of the following statements is CORRECT?

• A)When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A₀*/S₀ and L₀*/S₀) vary from year to year in a stable, predictable manner.
• B)When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.
• C)Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.
• D)For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.
• E)Regression techniques cannot be used in situations where excess capacity or economies of scale exist.

Recognize the influence of stereotype threat on performance and its application in understanding gender differences in math performance.

Identify sexist biases in educational settings and their effects on gender differences in academic achievement.

Understand the concept of confounding variables and their impact on the validity of experimental research findings.

Grasp the essence of the differences and similarities tradition within feminist theory and its implication on gender research.

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Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and generate profit.

Incremental Annual Net Cash Inflows

The additional cash flow a company receives from undertaking a project, after accounting for direct costs and revenue changes.

Donut Maker

A kitchen appliance used specifically for making donuts.

Simple Rate

A basic, uncomplicated rate often used in calculations that do not require detailed financial complexity.