Computations and Comparisons of Accounting Ratios Is Possible Because

question 11

Multiple Choice

Computations and comparisons of accounting ratios is possible because:

• A)the zero point in accounting implies "nothingness" in terms of dollar amount.
• B)accounting measures are on an interval scale.
• C)assets and liabilities are listed in the order of liquidity in the balance sheet.
• D)accounting is a basic classification system.

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Definitions:

Standard Time

A predetermined or established duration for performing a task, used for planning, scheduling, and evaluating work efficiency.

Normal Time

usually refers to the standard duration allocated to complete a task or process under typical conditions.

Fatigue Allowances

Adjustments made in the scheduling or workload to account for worker fatigue, aimed at maintaining efficiency and preventing accidents.

Normal Time

The estimated duration to complete a task under normal conditions, taking into account average delays and productivity levels.