In Cost-Volume-Profit Analysis,sales Revenue Is Computed by Multiplying Units Sold

question 2

True/False

In cost-volume-profit analysis,sales revenue is computed by multiplying units sold by the selling price per unit,and the targeted profit is projected by management.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.

Current Ratio

A financial metric assessing a firm's capability to meet its short-term debts, determined by dividing its current assets by its current liabilities.

Days' Sales

The metric used to evaluate how efficiently a company can convert its inventory into sales, often expressed as days' sales in inventory.

Receivables

All money claims against other entities, including people, business firms, and other organizations.