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:

Financial Sense

Pertains to the practical and prudent management of money and financial resources to achieve set goals effectively.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investing activities.

Marginal Revenue

The additional revenue that a company generates by selling one more unit of a product.

Simulation Analysis

A method used in financial planning that assesses the impact of different variables on a model's outcome to predict possible outcomes under different scenarios.