Because Contribution Margin Is Based on Sales Price and Variable

question 145

True/False

Because contribution margin is based on sales price and variable costs,the contribution margin ratio can be calculated using either the total amounts or the unit amounts.

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Definitions:

National Debt

The gross total of financial obligations acquired by a country's governing institution, through assorted methods.

Budget Deficit

The financial situation where a government’s expenditures exceed its revenue.

Balance Budget

A balanced budget occurs when the total revenues equal total expenditures for a government within a specific fiscal period, eliminating deficits.

Fiscal Policy

Government policies related to taxation and government spending that influence economic conditions.