The Contribution Margin Is Calculated as

question 52

Multiple Choice

The contribution margin is calculated as

• A)sales revenue less cost of goods sold.
• B)sales revenue less discretionary costs.
• C)sales revenue less committed costs.
• D)sales revenue less total variable costs.

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Definitions:

Indirect Method

A way of calculating cash flows in the cash flow statement where net income is adjusted for changes in balance sheet items to calculate operating cash flows.

Statement Of Cash Flows

A financial document that presents the effects of changes in income and balance sheet items on cash and cash equivalents, categorized into the areas of operating, investing, and finance.

Cash Dividends

These are payments made by a corporation to its shareholders, usually as a distribution of profits.

Cash Dividends Payable

Cash dividends payable are dividends that a company has declared to distribute to its shareholders but has not yet paid out.