Which Concept Answers the Following Question: 'If Budgeted Revenues Are

question 17

Multiple Choice

Which concept answers the following question: 'If budgeted revenues are above break-even and decline, how far can they fall before the break-even point is reached?

• A)Contribution margin
• B)Relevant range of operations
• C)Operating leverage
• D)Margin of safety

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Definitions:

Obsolescence

The process of an asset becoming outdated or no longer used, often due to technological advancements.

Annual Rate of Return

The Annual Rate of Return is the percentage of profit or loss on an investment over a one-year period, taking into consideration both capital gains and dividends.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture.

Net Annual Cash Inflow

The difference between all cash received and all cash expended by a business in one year.