Chapter 02 - Master Test Bank
Figure 2-11
2-348 PLANNING GAP
COMPREHENSION
The question mark (?) represented by the wedge DBC in Figure 2-11 above is the __________. a. contribution margin marginal trend breakeven point planning gap sales differential Answer: d Page(s): 45-46 LO: 2-7 AACSB: Analytic QD: Medium Rationale: A planning gap (wedge DBC) is the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place. See Figure 2-11 in the textbook.
2-349 PLANNING GAP
COMPREHENSION
Based on the information in Figure 2-11 above, the planning gap between 2005 and 2012, as represented by the wedge DBC, __________. a. is widening is narrowing is staying the same cannot be quantified began to open in 1998 Answer: a
Page(s): 45-46
LO: 2-7
AACSB: Analytic
QD: Medium
Rationale: A planning gap (wedge DBC) is the difference between the projection of the path to reach a new goal (line BD) and the projection of the path of the results of a plan already in place (line BC). This difference is widening. See Figure 2-11 in the textbook. 2-138 Copyright Š 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education.