The Data That an Organization Purchases from Data Vendors Can

question 16

True/False

The data that an organization purchases from data vendors can act as the source data for a business intelligence system.

---

Definitions:

Contribution Margin Ratio

The ratio that indicates the percentage of each sale that exceeds the variable costs, calculated by subtracting variable costs from sales revenue and dividing by sales revenue.

Fixed Costs

Fixed costs are business expenses that do not change with the level of goods or services produced, such as rent, salaries, and insurance premiums, providing stability in business planning.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and one has "broken even".

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the proportion of fixed costs in a company's cost structure.