Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A) The degree of pretax cash flow operating leverage remains same for any level of revenue.
• B) The higher the proportion of fixed costs to variable costs in a project, the greater the sensitivity of pre-tax operating cash flows to changes in revenue.
• C) Depreciation and amortization are deducted to get pretax operating cash flows.
• D) The lower the proportion of fixed costs to variable costs in a project, the more pre-tax operating cash flows will vary as revenue varies.

Calculate the unit contribution margin and its importance in decision-making.

Compute and understand the contribution margin ratio for decision-making.

Understand the implications of fixed and variable costs in pricing and profit planning.

Identify key technologies and their impact on the evolution of film from silent to sound.

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Definitions:

International Loans

Financial lending provided by one country or international financial institution to another country for development or emergency financing.

Currency Exchanges

Marketplaces where currencies are traded, allowing for the conversion of one currency into another.

U.S. Current Account

The sum of the balance of trade (goods and services exports less imports), net income from abroad, and net current transfers for the United States, providing a measure of the country's international economic position.

U.S. Capital Account

Involves transactions that do not affect a country’s income, savings, or investments but consist mainly of international transfers of financial assets, such as loans and investments.