Evaluating Your Financial Health Consists of

question 19

Multiple Choice

Evaluating your financial health consists of

• A)preparing a personal balance sheet.
• B)determining what you are worth.
• C)preparing a personal income statement.
• D)determining where your money comes from and where it goes.
• E)all of the above.

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Definitions:

Variable Costs

Expenses that change directly in proportion to changes in business activity levels or volumes.

Contribution Margin

The sum of money left over after variable costs are subtracted, which is available to pay for fixed costs and add to profit.

Incremental Manufacturing Cost

The additional cost associated with producing one more unit of a product.

Direct Materials

Raw materials that are directly traceable and a major component of a finished product.