Which are true statements about the financial approaches

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Problem 1: Which of the following are true statements about the financial and managerial approaches to profit?

Option 1: The managerial approach contains the gross margin measure.
Option 2: The financial approach contains the contribution margin measure.
Option 3: The managerial approach contains the contribution margin measure.
Option 4: The financial approach contains the gross margin measure.

Problem 2: Which of following is true about the break-even point?

Option 1: Managers usually report the break-even point in currency terms.
Option 2: It's the point where contribution margin equals fixed costs.
Option 3: Managers usually report the break-even point in units.
Option 4: It's the point where variable costs equal fixed costs.

 

Reference no: EM132968144

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