The Contribution Margin Ratio Increases When

question 127

Multiple Choice

The contribution margin ratio increases when

• A) fixed costs increase.
• B) fixed costs decrease.
• C) variable costs as a percentage of sales decrease.
• D) variable costs as a percentage of sales increase.

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Definitions:

Erikson's

Pertains to Erik Erikson's theory of psychosocial development, which outlines eight stages from infancy to adulthood, focusing on the development of personality and identity.

Autonomy

The capacity to make an informed, uncoerced decision independently.

Shame and Doubt

Feelings of inadequacy that can arise in early childhood as part of psychosocial development, according to Erik Erickson's stages.

Cognitive Behavioral Therapy

A form of psychotherapy that focuses on modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic process.