Which of the Following Would Decrease After-Tax Operating Cash Flows

question 38

Multiple Choice

Which of the following would decrease after-tax operating cash flows? A decrease in

• A)depreciation expense.
• B)interest expense.
• C)incremental sales.
• D)both A and C.

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Definitions:

Inelastic Demand

This economic concept describes a situation where the demand for a product does not significantly change with the price change.

Contribution Margin

A financial metric that represents the amount of revenue from sales that exceeds variable costs, used to cover fixed expenses and generate profit.

Unit Variable Cost

The cost associated with producing one additional unit of product, which includes labor, materials, and other variable expenses.

Total Revenue

The total amount of income generated by the sales of goods or services associated with a company's primary operations.