Which Method of Allocation of Profits and Losses Is Based

question 74

Multiple Choice

Which method of allocation of profits and losses is based on a percent of initial investment of the partners?

• A) Salary allowance
• B) Salary expense
• C) Profit and loss ratio
• D) Interest allowance

Understand the economic effects of migration on sending and receiving countries.

Analyze the impact of remittances on the economies of emigrant nations.

Evaluate the factors affecting the magnitude of efficiency gains from migration.

Assess how migration influences wage disparities and employment levels globally.

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no gain or loss for the business.

Cost-volume-profit Analysis

An accounting technique used to determine the effects of changes in costs and volume on a company's profit.

Sales Mix

The combination of different products or services that a company sells, influencing overall sales volume and profitability.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as (Sales - Variable Costs) / Sales.