Which of the Following Is Not a Technique Used to Construct

question 26

Multiple Choice

Which of the following is not a technique used to construct contribution margin statements?

• A)Account classification
• B)Capacity analysis
• C)High-low method
• D)Regression analysis
• E)All of the above are techniques used to construct contribution margin statements.

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Definitions:

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.

Permanent/Temporary

Pertaining to accounts in accounting where permanent accounts are balance sheet accounts that carry over balances into the next financial period, and temporary accounts are reset or closed to equity through retained earnings at the end of a period.

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded, reflecting the nature of the account.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including income statement, balance sheet, and cash flow statement.