Intracompany Standards for Financial Statement Analysis Are

question 151

Multiple Choice

Intracompany standards for financial statement analysis are:

• A)Often based on a company's prior performance.
• B)Often set by competitors.
• C)Set by the company's industry.
• D)Based on rules of thumb.
• E)Published in Dun and Bradstreet.

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Definitions:

Fixed Costs

Expenses that do not change with an increase or decrease in the amount of goods or services produced.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that remain constant for a given period regardless of the level of production or sales activity, such as rent and management salaries.