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With the Aid of Computer Software, Managers Can Vary Assumptions

question 205

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With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break-even point and profit. This is called:


Definitions:

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, investment activities, and financing, as well as all cash outflows that pay for business activities and investments during a given period.

Common Stock

A type of security that signifies ownership in a corporation, representing a claim on part of the corporation's profits and assets.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Operating Activities

These are the primary day-to-day activities of a company involved in producing and delivering its products or services, which are reflected in the income statement.

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