Improper Use of Credit May

question 79

Multiple Choice

Improper use of credit may

• A) increase your ability to save money.
• B) make it necessary to file for bankruptcy.
• C) increase your personal wealth.
• D) All of the above.

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Definitions:

Fixed

Refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin

The difference between a company's sales revenue and variable costs, which contributes to covering its fixed costs and generating profit.

Variable Cost

Expenses that change in proportion to the amount of goods produced or the volume of services provided.

Variable Costing

A costing approach in which only variable manufacturing costs are product costs, and fixed manufacturing costs are period costs (expenses).