To Perform Simulation in a Spreadsheet, We Must First Place

question 48

True/False

To perform simulation in a spreadsheet, we must first place a random number generator (RNG) formula in each cell that represents a random, or uncertain, independent variable.

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Definitions:

Contribution Format

A method of income statement presentation that separates fixed and variable costs, making it easier to see the contribution margin.

Segmented Income Statement

An income statement that shows the financial results of different segments of a company separately.

Contribution Format

A financial reporting format that highlights the variable costs associated with a product or service, used to calculate contribution margin.

Break-Even Sales

The amount of revenue required to cover total fixed and variable costs, beyond which a business starts generating profit.