Define the Following Terms: Mechanistic Worldview

question 10

Short Answer

Define the following terms: mechanistic worldview

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Variable Costing

A costing method that only includes variable costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, while fixed costs are expensed in the period they are incurred.