A Manifold Gauge Set Can Be Used During A/C System

question 65

True/False

A manifold gauge set can be used during A/C system diagnosis.

Understand the difference between absorption costing and variable costing.

Determine the unit product cost under both costing methods.

Analyze the impact of production and sales volume on net operating income.

Understand the role of fixed and variable costs in costing methods.

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Definitions:

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Variable Costs

Costs that vary in direct proportion to changes in levels of an activity or production volume.

Fixed Costs

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

Net Income

The total earnings of a company after subtracting all of its expenses, including taxes and operating expenses, from its total revenues.