Which of the Following Is False

question 17

Multiple Choice

Which of the following is false?

• A) Financial forecasts utilize multiple assumptions.
• B) Some items are held constant at their most recent actual value.
• C) It is possible, with the given information, to find EFR.
• D) Retained earnings are estimated as a direct percentage of sales.

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Definitions:

Output

The quantity of goods or services produced by a firm or industry.

Total Variable Costs

The sum of expenses that change in proportion to the activity of a business, such as costs for raw materials and labor, which vary with production volume.

Firm Produces

The process by which a business combines inputs, such as labor and capital, to create outputs, or goods and services, for consumption.

Marginal Cost

The cost associated with producing one more unit of a specific good or service, key in decision-making processes for production levels.