Examlex
Which one of the following is incorrect?
Fixed Costs
Fixed costs are expenses that do not change with the level of production or sales activity, such as rent, salaries, or insurance, remaining constant regardless of business operations.
Contribution Margin
The difference between sales revenue and variable costs, showing how much sales contribute to covering fixed costs and generating profit.
Variable Costs
Expenses that fluctuate with changes in production volume or service levels, such as materials and labor costs.
Fixed Costs
Payments for rent, salaries to employees, and insurance coverages that stay the same, no matter the production or sales figures.
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