Multiple products make using financial models more complex.To deal with this,managers can do which of the following?
A)assume that all products have the same contribution margin.
B)assume that a particular product mix does not change.
C)treat each product line as a separate entity.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

To simplify the complexity of using financial models with multiple products, managers can assume all products have the same contribution margin, assume a particular product mix does not change, or treat each product line as a separate entity. Each of these strategies helps in managing the complexity by reducing the number of variables or assumptions that need to be considered.

Multiple Products Make Using Financial Models More Complex