Depreciation Is

question 78

Multiple Choice

Depreciation is

• A) what is left over from total new private investment after use for a year.
• B) the total amount of private investment purchases, whether new or previously existing.
• C) the total amount of new private investment purchases.
• D) the wear and tear on private investment.

---

Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion available to cover fixed costs and generate profit.

Operating Income

Income generated from a company's ongoing, core business operations, excluding deductions of interest and taxes.

Variable Costs

Costs that vary directly with the level of production or business activity.

Income From Operations

Income From Operations is the profit realized from a business's operational activities, excluding any investment income or taxes.