Consider the Following Transactions

question 16

Multiple Choice

Consider the following transactions:

Which of the above transactions do NOT increase revenue?

• A) (i) and (ii) only.
• B) (ii) and (iii) only.
• C) (i) and (iii) only.
• D) (i), (ii) and (iv).

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Definitions:

Financial Advantage

The benefit obtained from making specific financial decisions or investments, often measured in terms of profit, savings, or a more favorable financial position.

Variable Costs

Expenses that change in proportion to the business activity level.

Financial Advantage

The benefit gained in financial terms, likely leading to improved profitability or reduced expenses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed expenses and profit.