During the Year, Salaries and Wages Payable Decreased by ¥60,000

question 151

Multiple Choice

During the year, Salaries and Wages Payable decreased by ¥60,000. If Salaries and Wages Expense amounted to ¥1,900,000 for the year, the cash paid to employees (including deductions from gross pay) is

• A) ¥1,960,000.
• B) ¥1,900,000.
• C) ¥1,840,000.
• D) ¥2,020,000.

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Definitions:

Contribution Margin

The contribution margin is the sales revenue minus the variable costs. It shows how much revenue contributes to covering the fixed costs and generating profit.

Fixed Corporate Costs

Expenses that do not vary with production levels, including salaries of executives, rent, and insurance.

Fixed Costs

Expenses that do not change with the level of output or sales over a specific period, such as rent, salaries, or insurance.

Financial Advantage

The gain or benefit obtained in financial terms, often seen in the context of investments or business operations.