A Survey Showed That in Each of the Past 12

question 154

Multiple Choice

A survey showed that in each of the past 12 months there was one person who was unemployed who worked in all other months.There were also two people who were unemployed for all 12 months.What percentage of the unemployment spells during the year was short term,and what percentage of the unemployment in a given month was long term?

• A)75% was short term;33.3% was long term
• B)75% was short term;66.7% was long term
• C)85.7% was short term;33.3% was long term
• D)85.7% was short term;66.7% was long term

Learn how cost behavior analysis helps to predict changes in costs over different levels of activity.

Interpret financial data to determine gross margin, net income, and contribution margin.

Understand and apply different methods (scattergraph, high-low, least-squares regression) for estimating costs.

Differentiate among variable, fixed, step-variable, and mixed costs.

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Definitions:

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Financing Charges

Interest and other costs associated with borrowing funds or purchasing goods and services on credit.