The Contribution Margin Ratio Always Increases When The

question 113

Multiple Choice

The contribution margin ratio always increases when the:

• A)break-even point decreases.
• B)variable expenses as a percentage of sales decrease.
• C)break-even point increases.
• D)variable expenses as a percentage of sales increase.

Comprehend the sequence of major activities in an organization and how they contribute to business operations.

Identify and calculate cost of goods sold (COGS) in manufacturing.

Differentiate between various types of costs (fixed, variable, product, period) and their relevance to accounting and decision making.

Analyze how direct and indirect costs impact product pricing and cost management.

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Definitions:

Subjective theory

A perspective emphasizing the importance of personal perspectives and feelings in interpreting events, as opposed to objective facts.

Universal justification

A philosophical concept proposing that certain principles or reasons for actions are universally applicable and can be justified across different contexts.

Moral values

Fundamental beliefs about what is right and wrong or good and bad, often influencing behavior and decision-making.

Moral reasoning

The process through which individuals make decisions about what is right and wrong, guided by ethical principles and personal values.