Examlex
Which of the following statements about the Lawton IADLs instrument is true?
Variable Cost
Costs that change directly in proportion to changes in the volume of production or sales, such as raw materials and direct labor.
Contribution Margin
The amount by which a product's sales price exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.
Machine Hour
A measurement of production time, counting one hour of operation of a machine or a piece of equipment for manufacturing purposes.
Sales Margin
The difference between the selling price of a product and the cost of goods sold, expressed as a percentage of sales, indicating the profitability of a product.
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