Contribution Margin Is

question 44

Multiple Choice

Contribution margin is

• A) the amount of revenue remaining after deducting fixed costs.
• B) available to cover fixed costs and contribute to income for the company.
• C) sales less fixed costs.
• D) unit selling price less unit fixed costs.

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Definitions:

Lessees Disclosure

Information that lessees are required to make known, typically relating to the rights and obligations arising from leasing arrangements per accounting standards.

Initial Direct Costs

Expenses directly associated with obtaining a financing agreement or leasing contract.

Lease Expense

The cost incurred from leasing an asset, recognized in the income statement over the lease term as an operating expense for operating leases or as depreciation and interest for finance leases.

Defined Benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age.