Shoshana Needs to Create a Report That Looks into the Financial

question 11

Multiple Choice

Shoshana needs to create a report that looks into the financial implications of acquiring another company. So she needs to prepare a ________.

• A) diligence report
• B) market analysis report
• C) analytical report
• D) due diligence report

---

Definitions:

Planning Horizon

The period into the future for which a company or individual makes plans and decisions, considering both short-term and long-term objectives.

Cost Of Goods Sold

Costs that are directly tied to the generation of products a company markets, including both materials and labor.

Variable Cost

Charges that increase or decrease depending on the volume of production or sales, like raw materials and direct labor.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.