1) how do you use financial ratios to analyze the performance of a company? What do we mean when we refer to horizontal and vertical analysis? 2) Are CPA firms impacted in the way they deal with public and private companies? Why or why not? Question: In a company that is experiencing economies of scale, which of the following is true? A Average total cost is decreasing B Fixed cost is decreasing C Average marginal cost is decreasing D Marginal cost is higher than average marginal cost Question: What is the definition of market equilibrium? A The price at which elasticity of demand is unit elastic B The price and quantity at which all consumer surplus is extracted from buyers C The price at which quantity supplied equals quantity demanded D All of the above Question: It costs your company $200 to produce pens and pencils together. To produce the same amount of pens and pencils separately costs $100 for the pens and $120 for the pencils. The production of pens and pencils exhibits A Diseconomies of scope B Economies of scope C Increasing returns to scale D Constant returns to scale Question: Management at the East Alabama Motor Speedway estimates that the "Friday Night Fanatics" would continue to enthusiastically pack the house (every ticket would be sold) even after a 35% increase in the price of admission. Apparently, the E.A.M.S is operating in the ______ portion of their ______ curve. A Inelastic, supply B Elastic, supply C Inelastic, demand D Elastic, demand Question: If a firm's average cost is falling (economies of scale) with output, then A Marginal cost is less than average cost B Marginal cost is rising C Marginal cost is greater than average cost D Average cost is rising as a function of output Question: A company currently sells 60,000 units a month at $10 per unit. The variable cost per unit is $6. The company decided to raise the price about 10%. How much change in the number of units sold can the company afford and still be no worse off? A - 48,000 B - 12,000 C - 8,000 D + 12,000 Question: A spirits manufacturer is considering two potential production investments. Option A costs an initial $2 billion and will involve variable costs (labor and material) of $5 per bottle of spirits. Option B costs an initial $4 billion and will involve variable costs (labor and material) of $3 per bottle of spirits. Assuming an annual capital charge equal to 10 percent of the initial costs, what is the average fixed cost at production level of 20,000,000 bottles per year for the Option B facility? A $3 B $20 C $23 D $10 A Configuration A B Configuration B C Configuration C D None of the configurations Question: The U.S. Government bought 112,000 acres of land in southeastern Colorado in 1968 for $17,500,000. The cost of using this land today exclusively for the reintroduction of the black-tailed prairie dog A Is zero, because they already own the land B Is zero, becaus ...