Which of the Following Is the Control Equation

question 15

Multiple Choice

Which of the following is the control equation?

• A) Need for Action = Desired Performance - Actual Performance
• B) Breakeven Point = Fixed Costs - (Price - Variable Costs)
• C) Acid Test = Current Assets - Inventories/Current Liabilities
• D) Debt Ratio = Total Debts/Total Assets
• E) Net Income = Sales - Expenses

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Definitions:

Taxes

Mandatory monetary fees or different forms of levies collected from taxpayers by government entities to support government expenses and a range of public services.

Buyers

Individuals or organizations that purchase goods or services for personal use, consumption, or to use in the production of other goods and services.

Sellers

Persons or organizations that provide products or services for purchase in the marketplace.

Levied

The act of imposing a tax, fee, or fine by an authority.