Throughput Contribution Is Computed as

question 24

Multiple Choice

Throughput contribution is computed as

• A) Sales - variable costs
• B) Sales - cost of direct materials purchased
• C) Number of units sold × (price per unit - material cost per unit)
• D) Sales - period costs

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Definitions:

Extraction Costs

The expenses associated with the removal of raw materials from the earth or the harvesting of natural resources.

User Costs

Expenses incurred by consumers or firms for the use of assets, services, or capital, which can affect decisions on consumption or investment.

Price of Resource

The cost associated with acquiring, producing, or utilizing a resource, which may include materials, labor, or capital.

Optimal Extraction Level

The most efficient point at which a resource can be extracted or harvested to balance usage and sustainability over time.