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:

Phineas Gage

A railroad worker from the 19th century whose behavioral changes after surviving a severe brain injury contributed to the understanding of the role of the frontal lobes in personality.

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A condition or state where an individual experiences a reduced range of emotions, often due to psychological or neurological factors.

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The skill to comprehend, regulate, and communicate one's emotional state, alongside the capability to manage social interactions with discretion and empathy.

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The cognitive process of selecting a course of action from among multiple alternatives, often involving considerations of risk, benefit, and personal values.