Which of the Following Is Used to Determine How the Sales

question 53

Multiple Choice

Which of the following is used to determine how the sales revenue of a company has changed from one year to the next?

• A) vertical analysis of the balance sheet
• B) horizontal analysis of the income statement
• C) horizontal analysis of the balance sheet
• D) vertical analysis of the income statement

Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.

Evaluate the conditions under which a cost center might be a more appropriate organizational design choice than a profit center.

Grasp the complexities involved in the performance evaluation of profit center managers and the impact of discretion in decision-making.

Understand the relationship between division profits and company-wide profits.

---

Definitions:

Aggregate Demand Curve

A graphical representation showing the total demand for goods and services in an economy at various price levels, generally illustrating an inverse relationship between the price level and the quantity of output demanded.

Long-Run Aggregate Supply Curve

A graphical representation showing an economy's productive capacity and output when all resources are fully employed, assuming no fixed factors of production.

Velocity of Money

The velocity of money measures the rate at which money circulates in the economy, indicating how frequently units of currency are used to purchase domestically-produced goods and services within a given time period.

Commercial Innovation

A process or outcome that introduces new methods, products, or ideas into the market, improving efficiency, productivity, or offering new benefits to consumers.