Sue Taylor,Director of Global Industrial Sales,is Concerned by a Deteriorating

question 24

Multiple Choice

Sue Taylor,Director of Global Industrial Sales,is concerned by a deteriorating sales trend.Specifically,the number of industrial customers is stable at 1,500,but they are purchasing less each year.She orders her staff to search for causes of the downward trend by surveying all 1,500 industrial customers.One question on the survey asked the customers: "Which of the following best describes your primary business: a.manufacturing,b.wholesaler,c.retail,d.service." The measurement level for this question is ___.

• A)interval level
• B)ordinal level
• C)nominal level
• D)ratio level
• E)relative level

Understand the concept of step-variable costs and how they behave in response to changes in activity levels.

Comprehend the method of account analysis for classifying costs.

Understand the concept of a contribution format income statement and its uses in internal planning and decision-making.

Distinguish between variable and fixed costs in the context of contribution and traditional income statements.

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Definitions:

Marginal Benefit

The additional satisfaction or value a consumer receives from consuming one more unit of a good or service.

Pollution

The introduction of contaminants into the natural environment, causing adverse change and harm to habitats and organisms.

Sources

Refers to the origins or places from which something is obtained, often used in the context of gathering information or materials.

Emissions Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental harm by incentivizing companies to lower their pollution levels.