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Three of the Following Terms Are Interchangeable

question 60

Multiple Choice

Three of the following terms are interchangeable. Which one does NOT belong with the other three?


Definitions:

Total Contribution Margin

The difference between sales revenue and variable costs, representing the total earning potential before fixed costs are deducted.

Variable Costs

Financial outlays that shift proportional to the volume of production or sales, encompassing labor and material costs.

Contribution Margin

The difference between the sales revenue generated from a product or service and its variable costs.

Pretax Income

The income of a company before taxes are deducted, used to assess profitability before tax expenses are applied.

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