If a Company Reports That Its Quarterly Earnings Will Be

question 5

Multiple Choice

If a company reports that its quarterly earnings will be between $100 million and $125 million,the range is an example of ________ variation.

• A)chance
• B)external
• C)assignable
• D)controlled

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Definitions:

Break-even Point

The point at which total revenues equal total costs, and the business makes neither a profit nor a loss.

Fixed Expenses

Fixed expenses that are unaffected by the volume of manufacturing or sales activities, and include items like rental costs, employee salaries, and premiums for insurance.

Monthly Advertising Budget

The allocated amount of spending for advertising activities planned for a month.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before interest and taxes.