Utilizing Past Cost and Expense Ratios (Percent-Of-Sales Method) When Preparing

question 40

Multiple Choice

Utilizing past cost and expense ratios (percent-of-sales method) when preparing pro forma financial statements will tend to ________.

• A) understate profits when sales are decreasing and overstate profits when sales are increasing
• B) understate profits, no matter what the change in sales, as long as fixed costs are present
• C) understate profits when sales are increasing and overstate profits when sales are decreasing
• D) overstate profits, no matter what the change in sales, as long as fixed costs are present

Recognize how to backup and restore macros for data protection.

Understand the purpose and use of the Action Catalog and Macro Design View.

Learn the conversion process of macros to VBA code.

Understand the basic functions and elements of macros in Access.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, none of whom can influence market prices, with free entry and exit from the market.

Product Price

The amount of money required to purchase a good or service, determined by factors such as cost of production, market demand, and competition.

Imperfectly Competitive

Characterizes markets where individual sellers can influence prices and products, unlike in perfectly competitive markets.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.