Ratios Used to Compare Different Firms at the Same Point

question 126

Multiple Choice

Ratios used to compare different firms at the same point in time belong to a category of analysis called:

• A) time series analysis
• B) cross-sectional analysis
• C) industry comparative analysis
• D) just-in-time analysis

---

Definitions:

Production Function

A mathematical representation that explains how inputs in production are related to the goods or services produced.

Proportions

Ratios or fractions that express the relationship of one part to another or to the whole with respect to quantity, size, or amount.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Production Function

A mathematical expression that describes the relationship between input factors of production (like labor and capital) and the output of goods or services.