Explain Masham's Point When She Says, "It Is Indeed Only

question 68

Essay

Explain Masham's point when she says, "It is indeed only a rational fear of God, and desire to approve ourselves to him, that will teach us in all things, uniformly to live as becomes our reasonable nature; to enable us to do which, must be the great business and end of a religion which comes from God."

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Definitions:

Contribution Format

An income statement format that separates fixed and variable costs, showing the contribution margin which covers fixed costs and profits.

Absorption Costing

A bookkeeping strategy that encompasses all production expenses, including direct materials, direct labor, and variable plus fixed overhead, into the pricing of a product.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed overhead expenses as period costs.

Variable Costing Income

An accounting method that considers only variable costs—costs that vary with production—when determining cost of goods sold and, ultimately, income.