Managers Can Quickly Forecast the Total Contribution Margin by Dividing

question 90

Multiple Choice

Managers can quickly forecast the total contribution margin by dividing the

• A)projected sales units by the variable cost ratio.
• B)projected sales units by the contribution margin ratio.
• C)projected sales revenue by the unit contribution margin.
• D)projected sales revenue by the contribution margin ratio.

Ability to differentiate between the direct and indirect methods of reporting cash flows from operating activities and their implications.

Comprehend the adjustments needed to convert net income to net cash provided by operating activities using the indirect method.

Identify and adjust the effects of changes in working capital accounts on cash flows using the direct method.

Assess how changes in balance sheet accounts impact the cash flow statement.

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