Contribution Margin Is the Amount of Revenue That Remains to Cover

question 114

True/False

Contribution margin is the amount of revenue that remains to cover fixed costs and provide a profit.

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Definitions:

Accounting Equation

The foundational equation in accounting, representing the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.

Insurance Policy

A contract between an insurer and a policyholder specifying the terms for payout in the event of loss or damage.

Supplies On Account

Goods or items purchased on credit, where payment is deferred to a future date, typically recorded as a liability until paid.

Debit And Credit

Debit and credit are fundamental categories used in accounting to record and maintain financial transactions, where debit refers to the left side of an account and credit refers to the right side.