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.

Apply the concept of present value in determining the amount of periodic payments or contributions.

Use financial formulas to calculate the amount of interest paid over the life of a loan.

Plan financial goals such as saving for education, purchasing a home, or preparing for retirement by calculating necessary contributions.

Understand the factors affecting the accumulation and depletion of savings and investments over time.

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Definitions:

No Par Value

Refers to shares issued without a stated face value, with their selling price determined by the issuing company.

Stated Value

A value that is assigned to no-par value stock by the company’s board of directors, which becomes the legal capital per share of the stock.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Subscriptions Receivable-Common Stock

An account that represents amounts due from subscribers who have agreed to purchase common stock of a company but have not yet paid.