Which of the Following Statements Is Correct About the Difference

question 103

Multiple Choice

Which of the following statements is correct about the difference between contribution margin and gross margin?

• A)Contribution margin and gross margin are equivalent.
• B)Contribution margin is the difference between sales revenue and cost of goods sold.
• C)Gross margin is the difference between sales revenue and variable costs.
• D)Gross margin is used for external reporting,while contribution margin is used for internal reporting.

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Definitions:

Not Be

Expresses negation, absence, or the non-existence of something or someone.

Compatible Events

Events in probability that can occur together without contradiction; they are not mutually exclusive.

Disjunction

A logical operator that yields true if either or both of the operands are true.

Probability

The measure of the likelihood that an event will occur, often represented as a number between 0 and 1.