Exam 2- Chapter 10

Financial projections to assess the impact of different scenarios are calculated using

A spreadsheet program

One of the simplest and probably the most widely used small business accounting software package is Intuit's Quickbooks. True False

True

Fixed assets are those that:

will be used over a long period of time.

The contribution margin is:

selling price minus variable cost per unit.

The marginal contribution is defined as:

selling price per unit minus variable cost per unit

Zappos, under a cash flow crunch, was bought out by _______.

Amazon

Cash flow is the result of subtracting expenses from sales. True False

False

Fixed operating expenses include all of the following except:

Raw Materials

As long as the selling price is less than the variable cost per unit, some contribution will be made to cover fixed costs. True False

false