As a Child, You Drive a Nail in the Trunk

question 51

Multiple Choice

As a child, you drive a nail in the trunk of a young tree that is 3 metres tall. The nail is about 1.5 metres from the ground. Fifteen years later, you return and discover that the tree has grown to a height of 30 metres. About how many metres above the ground is the nail?

• A) 0.5
• B) 1.5
• C) 3.0
• D) 15.0

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum of the cost plus profit.

Variable Costs

Expenses that change in proportion to the production output or sales amount.

Target Costing

A pricing strategy in which the selling price of a product is set first, and then the target cost is determined by subtracting a desired profit margin from the selling price.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net income divided by the cost of the investment.