Unit Contribution Margin Is the Amount That Each Unit Sold

question 168

True/False

Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed costs and to income.

Differentiate between "partnership property" and a "partner's interest."

Recognize the evidence indicative of a partnership formation.

Understand various business forms and their characteristics.

Grasp the concept of liability and protection in different business structures.

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Definitions:

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Net Income

The net income of a company once all costs and taxes are subtracted from its revenues.