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The formula should be independent of the unit in which or for which price and quantities are quoted in
- a)Unit Test
- b)Time Reversal Test
- c)Factor Reversal Test
- d)none
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The formula should be independent of the unit in which or for which pr...
The correct answer is option 'A', which means that the formula should be independent of the unit in which price and quantities are quoted.
Explanation:
In finance and accounting, it is important to have a formula that is independent of the unit in which price and quantities are quoted. This is because the same price and quantity may be expressed in different units, such as dollars, euros, pounds, or yen, and the formula should remain valid irrespective of the unit used.
For example, if we have a formula for calculating the cost of goods sold, it should be valid whether we express the cost in dollars, euros, or pounds. Similarly, if we have a formula for calculating the return on investment, it should be valid whether we express the return in dollars, euros, or pounds.
The formula should be independent of the unit used because it allows us to compare prices and quantities across different currencies and markets. Without this independence, it would be difficult to compare prices and quantities across different currencies and markets.
To ensure that the formula is independent of the unit used, we can use dimensional analysis. Dimensional analysis is a mathematical technique that checks the consistency of units in a formula. If the units are consistent, then the formula is independent of the unit used. If the units are not consistent, then the formula is dependent on the unit used.
In conclusion, the formula should be independent of the unit in which price and quantities are quoted to allow for easy comparison across different currencies and markets.
Explanation:
In finance and accounting, it is important to have a formula that is independent of the unit in which price and quantities are quoted. This is because the same price and quantity may be expressed in different units, such as dollars, euros, pounds, or yen, and the formula should remain valid irrespective of the unit used.
For example, if we have a formula for calculating the cost of goods sold, it should be valid whether we express the cost in dollars, euros, or pounds. Similarly, if we have a formula for calculating the return on investment, it should be valid whether we express the return in dollars, euros, or pounds.
The formula should be independent of the unit used because it allows us to compare prices and quantities across different currencies and markets. Without this independence, it would be difficult to compare prices and quantities across different currencies and markets.
To ensure that the formula is independent of the unit used, we can use dimensional analysis. Dimensional analysis is a mathematical technique that checks the consistency of units in a formula. If the units are consistent, then the formula is independent of the unit used. If the units are not consistent, then the formula is dependent on the unit used.
In conclusion, the formula should be independent of the unit in which price and quantities are quoted to allow for easy comparison across different currencies and markets.
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The formula should be independent of the unit in which or for which price and quantities are quoted ina)Unit Testb)Time Reversal Testc)Factor Reversal Testd)noneCorrect answer is option 'A'. Can you explain this answer?
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The formula should be independent of the unit in which or for which price and quantities are quoted ina)Unit Testb)Time Reversal Testc)Factor Reversal Testd)noneCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The formula should be independent of the unit in which or for which price and quantities are quoted ina)Unit Testb)Time Reversal Testc)Factor Reversal Testd)noneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The formula should be independent of the unit in which or for which price and quantities are quoted ina)Unit Testb)Time Reversal Testc)Factor Reversal Testd)noneCorrect answer is option 'A'. Can you explain this answer?.
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