A Technique That Analyzes the Relationship Between Total Revenue and Total

question 132

Multiple Choice

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as

• A) break-even analysis.
• B) marginal analysis.
• C) sensitivity analysis.
• D) market analysis.
• E) tipping point analysis.

---

Definitions:

Net Cash Provided

The surplus amount of cash generated by an entity's operations after accounting for all outgoing and incoming cash flows.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at two or more different dates for the purpose of comparison.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was placed in service, reducing its book value.

Cash Dividends

are profit distributions made by a corporation to its stockholders in the form of cash.