_____ Is All Variable Costs Divided by Sales

question 59

Multiple Choice

_____ is all variable costs divided by sales.

• A)Gross margin
• B)Contribution-margin ratio
• C)Variable-cost ratio
• D)The sales mix

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Definitions:

Activity Cost Pools

A grouping of all the costs related to a particular activity or process, used in activity-based costing to allocate costs more accurately to products or services.

Traditional Cost System

A costing methodology that assigns manufacturing overhead based on volume-related measures, often neglecting the complexity or variety of activities.

Activity-Based Costing

An accounting method that assigns costs to products based on the activities they require, aiming to provide more accurate costing information.

Product Diversity

The range of different products or services offered by a business to meet various customer needs and market demands.