A Major Disadvantage of the Template Approach Is the Number

question 51

Multiple Choice

A major disadvantage of the template approach is the number of columns that can be manageably used.This disadvantage can be eliminated through

• A)general ledger accounts.
• B)transaction analysis.
• C)double-entry accounting system.
• D)chart of accounts.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Dollar Sales Volume

The total revenue generated from the sale of goods or services, expressed in monetary terms.

Target Net Profit

A specific financial goal for net income that a company aims to achieve within a certain period.

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, showing the proportion of sales revenue that exceeds variable costs.