The Most Important Performance Measure Is Profit

question 12

True/False

The most important performance measure is profit.However,there are good and bad profits.

---

Definitions:

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of output, excluding fixed costs.

Contribution Format

A method of income statement preparation that separates fixed costs from variable costs.

Traditional Format

A conventional method of presenting financial statements or information, typically focusing on separating costs into fixed and variable categories.

Variable Selling Expense

Expenses that vary with sales volume, including commissions and shipping charges.