Which of the Following Is an Adjustment Required for a Needs

question 13

Multiple Choice

Which of the following is an adjustment required for a needs analysis?

• A)A decline in overall living costs caused by the reduction in household members
• B)Future education costs for children
• C)Repayment of the mortgage to reduce overhead costs and insurance needs resulting from a decline in overall living costs
• D)All of the above
• E)None of the above

---

Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how earnings are affected by revenue changes.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Initial Cash Outlay

The initial sum of money required to start an investment or project, often including costs such as purchase price, setup fees, and licensing.

Scenario Analysis

A method of examining potential future scenarios by evaluating different possible results.