The Excess of Revenue Over Variable Costs, Including Manufacturing, Selling

question 39

Multiple Choice

The excess of revenue over variable costs, including manufacturing, selling and administrative, is called:

• A)Gross margin.
• B)Manufacturing margin.
• C)Contribution margin.
• D)Segment margin.

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Definitions:

Demand Variability

The extent to which the demand for goods or services fluctuates over a certain period.

Safety Stock

Inventory kept on hand as a buffer against variability in demand or supply, to avoid out-of-stock situations.

Standard Deviation

A measure of the dispersion or spread of data points in a data set, indicating how much variation there is from the average.

Service Level

A measure of the quality of service provided by a business, often evaluated against customer expectations or industry standards.