Two of the Problem-Solving Approaches in Planning Are Efficiency and ______

question 37

Multiple Choice

Two of the problem-solving approaches in planning are efficiency and ______.

• A) effectiveness
• B) profit
• C) sustainability
• D) growth

---

Definitions:

Contribution Margin Ratio

The contribution margin ratio is a financial metric indicating the proportion of sales revenue that exceeds variable costs, expressed as a percentage.

Monthly Fixed Expenses

Regular expenses that do not vary in amount and are paid on a monthly basis.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, typically expressed as a percentage, indicating how much contributes to covering fixed costs and generating profits.

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent, salaries, and insurance.