A Promise to Pay a Debt Must Be in Writing

question 33

Multiple Choice

A promise to pay a debt must be in writing if:

• A) the debt is for more than $500.
• B) the debt is now due and payable.
• C) the promise is to pay the debt of another.
• D) the debt owed is the promisor's.

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Expenses

Variable expenses are costs that vary directly with changes in production levels or business activity, such as materials and labor.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or product, aiding in accurate financial analysis and decision-making.