A Balance Sheet Would Not Be Able to Help a Manager

question 168

Short Answer

A balance sheet would not be able to help a manager answer which question?
Is it a good time to try to grow the business?
Can the company survive if a period of low revenues happens?
Does the company have an excessive number of employees?
Is the company able to take on more debt?
What is the total value of all of the company's assets?

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Costs that vary directly with the level of production or output.

Cost-Volume Analysis

A managerial accounting technique used to analyze how various levels of sales and production will affect profit.

Low-Cost Choice

An option that requires minimal financial outlay compared to other alternatives.