Forecasting Financial Requirements Essay Paper
Contribution margin is best described as: Forecasting Financial Requirements Essay Paper
a. The amount that startup costs contribute to the production of one unit.
b. What is left over from the sale of one unit after subtracting fixed costs.
c. How much the revenue from the sale of one unit contributes to overhead.
d. What is left over from the sale of one unit after subtracting variable costs.
Cash flow is best described as:
a. The amount of revenue it takes to break even.
b. Total cash revenues minus total cash expenses per unit time.
c. The total of all expenses flowing out of the company.
d. The return, stated as a percentage, on cash invested in the business.
Startup expenses would NOT include (choose two)
a.Wages paid before a business opens.
b.Variable expenses incurred during the second year in business.
c.Equipment purchases paid by cash.
d.Wages paid after a business opens.