Controllable Margin Is Defined as

question 67

Multiple Choice

Controllable margin is defined as

• A) sales minus variable costs.
• B) sales minus contribution margin.
• C) contribution margin less controllable fixed costs.
• D) contribution margin less noncontrollable fixed costs.

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Definitions:

Milan

A city in Italy, known for its significant influence in fashion, design, and finance sectors.

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to make their product more attractive to distant buyers.

FOB Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to deliver goods, making the price including transportation costs.

Basing-Point Pricing

Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer.