Contribution Margin Statements

question 14

Multiple Choice

Contribution margin statements:

• A) Can be utilized to evaluate the effect of possible activity changes on profit before taxes.
• B) Cannot be utilized to evaluate the effect of possible activity changes if those changes also change fixed costs.
• C) Will not provide an alert if cost behaviors vary from those expected.
• D) Identify variable and fixed costs but will not address changes in revenues.

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Definitions:

Two-Word Verb

A verb phrase consisting of a verb and a preposition or an adverb; together, they function as a single semantic unit in a sentence.

Two-Word Verb

A two-word verb is a verb that consists of a verb plus a preposition or adverb which modifies or changes its meaning (e.g., "look up").

Communicating

The process of conveying information or expressing thoughts and feelings from one entity or group to another through the use of mutually understood signs, symbols, or language.

Cultures

The shared beliefs, customs, practices, and social behavior of a particular nation or people.