Which of the Following Is Not a Likely Benefit of Including

question 9

Multiple Choice

Which of the following is not a likely benefit of including a highlights statement in the annual report of a business?

• A) It provides unskilled readers of the report with a simple summary of key financial indicators
• B) The statement is regarded by many readers as being highly informative
• C) Performance indicators can be calculated and then clearly set out in the highlights statement
• D) Management can select what items are to be included in the report

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Definitions:

ATC

Average Total Cost, which is calculated by dividing total costs by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from an extra unit of production.

MR

Marginal Revenue, the additional income generated from selling one more unit of a product or service.

Perfectly Elastic

Perfectly elastic refers to a situation where the quantity demanded or supplied responds infinitely to changes in price.