In Using the Contribution Margin Technique

question 76

Multiple Choice

In using the contribution margin technique

• A)a target profit is added to variable costs.
• B)a target profit is added to fixed costs.
• C)fixed costs must always be shown separate from other costs and the target.
• D)the target profit should be shown after the break-even analysis indicates zero profit or loss.

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Definitions:

Federal Expenditures

Spending by the federal government of a country, including costs for defense, welfare, infrastructure, and other public services.

Income Security

A social welfare concept ensuring individuals have a basic level of income to cover essential needs.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a spouse or parent.

Discretionary Spending

This refers to the portion of government spending that is decided through the annual appropriations process, covering non-essential services that do not include mandatory spending like Social Security and Medicare.