Examlex
Which of the following pairs is incorrectly matched?
Total Contribution Margin
The difference between sales revenue and variable costs of production, indicating how much revenue contributes toward covering fixed costs and generating profit.
Pretax Income
The income a company generates before income taxes are deducted, also known as earnings before tax (EBT).
Variable Costing
An accounting method that only allocates variable costs to production, treating fixed costs as period costs that are charged to expense as they are incurred.
Fixed Overhead Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, and must be paid regardless of the business activity level.
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