Which of the Following Ratios Are Used as an Indicator

question 13

Multiple Choice

Which of the following ratios are used as an indicator of the inherent risk in investing in an entity?

• A) quick
• B) current
• C) leverage
• D) gross profit

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Definitions:

Marginal Cost

The expenditure involved in creating one more unit of a product or service.

Average Variable Cost

The cost per unit of producing additional units, excluding fixed costs, and is calculated by dividing total variable costs by the quantity of output.

Total Costs

The complete sum of all expenses a business incurs to produce its goods or services, including both fixed and variable costs.

Output

The cumulative quantity of products or services generated by a corporation, sector, or nation.