If the Price-Earnings Ratio Is 8 Times, the Earnings Yield

question 15

Multiple Choice

If the price-earnings ratio is 8 times, the earnings yield is:

• A)8%.
• B)12.5%.
• C)80%.
• D)10%.

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Definitions:

Indirect Labor

Costs associated with employees who do not directly produce goods but whose services are necessary for the manufacturing process.

Activity Pools

These refer to groups of related tasks or activities in a business that consume resources and are used in activity-based costing for assigning costs to products or services.

Activity Rate

A metric used to allocate costs based on the level of activity, commonly used in activity-based costing.

Scheduling Activity

The process of planning and organizing tasks or events over a given timeline to ensure efficient use of resources.