Contribution Margin Is the Amount of Revenues Remaining After Deducting

question 61

True/False

Contribution margin is the amount of revenues remaining after deducting cost of goods sold.

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process and are ready to be sold to customers.

Weighted Average Cost

A method of calculating the cost of goods sold and ending inventory cost by taking into account the cost of goods purchased at varying prices.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, used in calculating cost of goods sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.