Spreadsheet Modeling Is an Acquired Skill Because

question 17

Multiple Choice

Spreadsheet modeling is an acquired skill because

• A)there is generally only one correct way to build a model.
• B)the spreadsheet is free-form providing many modeling options.
• C)using Risk Solver Platform (RSP) requires lots of experience.
• D)spreadsheets are not very easy to use.

---

Definitions:

Revenue Remaining

The amount of income that remains after subtracting costs and expenses from the total revenue.

Relevant Range

The span within which the assumptions about fixed and variable cost behaviors are valid.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (materials, labor) in product cost, excluding fixed costs.