When Using Ratio Data for Comparison to Other Companies,analysts Should

question 17

Multiple Choice

When using ratio data for comparison to other companies,analysts should:

• A)not assume that all companies in the industry are in direct competition.
• B)not interpret the data as a way of determining which companies will survive and outperform others.
• C)only use data from one time period.
• D)use industry averages,rather than individual companies,for the comparison.

Understand and describe the concept of "manual babbling" in deaf babies as compared to verbal babbling in hearing babies.

Recognize how cognitive psychology relates thought processes to solving real-world problems.

Explain attitudes towards risk and decision-making based on framing effects as studied by Kahneman and Tversky.

Identify and understand the use of persuasive language and rhetorical devices in altering public opinion.

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Definitions:

Standard Direct Labor-Hours

The predetermined amount of labor time estimated or expected to produce a unit of output, used for budgeting and measuring efficiency.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor.

Direct Materials Purchases Variance

Direct materials purchases variance analyzes the difference between the actual cost of materials purchased and the budgeted cost, impacting budgeting and cost control.

Variable Overhead

Those overhead costs that vary in total directly and proportionately with changes in production or activity level.