A Spreadsheet Can Help Organize the Information Needed to Prepare

question 185

True/False

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.