In: Accounting
QUESTION 1
Lucy Brown is the manager of one department in a big store. In this capacity, which of the following kinds of information would he be interested in?
A. | Financial, economic, and nonfinancial data | |
B. | Economic data | |
C. | Nonfinancial Data | |
D. | Financial Data |
QUESTION 2
A company has high operating leverage when:
A. | small percentage changes in revenue produce large percentage changes in profit. | |
B. | the organization makes purchases on credit instead of paying cash. | |
C. | a company utilizes debt to finance its assets. | |
D. | management buys enough of the company's shares of stock to take control of the corporation. |
QUESTION 3
In the graph below, which depicts the relationship between units produced and unit cost, the dotted line depicts which type ofcost per unit?
A. | Mixed cost | |
B. | Fixed cost | |
C. | Variable cost | |
D. | None of these |
QUESTION 1 Lucy Brown is the manager of one department in a big store. In this capacity, which of the following kinds of information would he be interested in?
Answer : A. Financial, economic, and non- financial data
A lucy brown is the manager of the one deparment in a big store. in this capacity he had to take decisions and for that he will required all the data related to financial, econmic and non-fianacial data to take decision on that basis for the benefit of the big store or to full fill his responsibility.
QUESTION 2 A company has high operating leverage when:
Answer : A. Small Percentage changes in revenue produce large percentage change in profit.
operating leverage measures the change in operating profit as result of change in sales.
operating leverage is high when a small percentage change in dollar sales will change the large chagne in operating profit
Question 3 :In the graph below, which depicts the relationship between units produced and unit cost, the dotted line depicts which type of cost per unit?
Answer :B. FIxed cost :
As the dotted line is horizontal, the total cost is constant as volume changes, this shows a fixed cost.