Whereas ________ Proposals Are Used to Request Decisions from Managers

question 49

Multiple Choice

Whereas ________ proposals are used to request decisions from managers within an organization,________ proposals are directed to parties outside the organization.

• A)formal; informal
• B)internal; external
• C)solicited; unsolicited
• D)external; internal
• E)solicited; formal

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Definitions:

Contribution Margin

The contribution margin represents the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs, contributing to profit.

Fixed Cost

A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Hard Rationing

A situation where capital is not available to a company under any circumstances, often due to economic conditions or poor company performance.

Soft Rationing

A situation where a company limits the amount of funding or capital it allocates to new or ongoing projects, often due to internal policy decisions.