The Sides of a Rectangle Are Measured to Have Lengths

question 19

Multiple Choice

The sides of a rectangle are measured to have lengths 0.234 cm and 12.78 cm.Find the area of the rectangle using the correct number of significant figures.

• A)2.99052 cm²
• B)2.9905 cm²
• C)2.991 cm²
• D)2.990 cm²
• E)2.99 cm²

Understand the concept of operating leverage and its effects on profitability.

Calculate the margin of safety and understand its importance in assessing business risk.

Differentiate between variable costing and absorption costing and their impact on profitability.

Understand the application of CVP analysis for businesses with multiple products.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.

Absorption Costing

A system for determining product costs that encompasses all manufacturing expenses, including direct materials, direct labor, and overheads, regardless of them being fixed or variable.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Variable Overhead Cost

Overhead costs that vary with the level of production or business activity, such as utilities or materials used in production.