Examlex

Solved

When Derek Successfully Completes a Pass During a Football Game

question 43

Multiple Choice

When Derek successfully completes a pass during a football game, he congratulates himself for his athletic skill. However, when he is unsuccessful at completing a pass, he attributes his failure to a wet football. This pattern of attributions BEST illustrates _____.


Definitions:

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in dollar sales.

Net Operating Income

The income derived from a firm's core business operations, not including taxes and interest expenses.

Related Questions