A Market Is Said to Be _____ If It Derives

question 40

Multiple Choice

A market is said to be _____ if it derives most of its value from a single class of users.

• A) a pure play
• B) a long tail
• C) core competent
• D) one-sided
• E) convergent

Calculate margin of safety and its importance in assessing business performance.

Interpret the cost-volume-profit analysis through both equation form and graphic form for decision making.

Examine the feasibility of estimating the break-even point for businesses selling multiple products.

Evaluate the assumptions underlying cost-volume-profit analysis and their impact on the reliability of the analysis.

---

Definitions:

Direct Labor Time Variance

The difference between the actual time spent on production and the standard time expected, multiplied by the direct labor rate.

Actual Costs

The real costs incurred in the production, acquisition, or other activities of a business, as opposed to estimated or budgeted costs.

Standard Costs

An accounting practice where predetermined costs are used for calculating the cost of production, often for budgeting and performance evaluation purposes.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit of material.