Increased Sales of High Contribution Margin Products Increase the Break-Even

question 56

True/False

Increased sales of high contribution margin products increase the break-even point.

Understand the different components of a budget including sales, cash, production, and expense budgets.

Develop an understanding of continuous budgeting and rolling budget concepts.

Learn the process of budget coordination and its importance in strategic planning through the master budget.

Understand the role of safety stock in budgeting for inventory management.

---

Definitions:

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Unemployment Taxes

Taxes paid by employers to fund the unemployment benefits, based on the number of employees and the history of layoffs.