The Dollar Amount That Provides for Covering Fixed Costs and Then

question 253

Multiple Choice

The dollar amount that provides for covering fixed costs and then provides for operating income is called ________.

• A) variable cost
• B) total cost
• C) contribution margin
• D) margin of safety

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Definitions:

Discharges

The release or dismissal from a duty, obligation, or liability.

Employer

An individual or organization that hires and pays people to work for them under agreed-upon terms.

Adequately

In a manner that is sufficient or satisfactory for a particular purpose.

Performance

In contract law, it refers to the act of doing what is required by a contract.