Gross Margin and Contribution Margin Mean the Same Thing; They

question 6

True/False

Gross margin and contribution margin mean the same thing; they are just different ways of describing the result of sales less COGS (either variable or fixed).

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Definitions:

Freemium Model

A business model where basic services are provided free of charge while more advanced features must be paid for.

Free Newspapers

are newspapers distributed without charge, often funded by advertising revenue, and aimed at increasing readership and influence.

Advertisements

Paid announcements or messages in the media, intended to inform or influence the people who receive them about products, services, or ideas.

Direct Cross-Subsidies

A financial support system where the revenue from one product or service is used to support another within the same organization.