Which of the Following Equations Is True

question 20

Multiple Choice

Which of the following equations is true?

• A) Contribution margin = Sales revenue * Variable cost ratio
• B) Contribution margin ratio = Contribution margin/Variable costs
• C) Contribution margin = Fixed costs
• D) Contribution margin ratio = 1 - Variable cost ratio

Demonstrate knowledge of how to record the acquisition and disposal of fixed assets.

Recognize the criteria for classifying assets as fixed assets.

Explain the financial statement implications of leasing versus purchasing assets.

Appreciate the implications of asset revaluation and adjustment of useful life on depreciation calculations.

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Definitions:

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable; indicates how the tail on one side of the distribution compares to the tail on the other side.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values deviate from the mean.

Dispersed

Spread out over a wide area; not concentrated in one place.

Grade Distribution

The spread of grades given for a specific academic assessment, typically shown as a frequency distribution.