Comparing How Many Dollars It Takes You to Run Your

question 198

Multiple Choice

Comparing how many dollars it takes you to run your car each year to annual earnings on a job instead of keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as

• A)means of payment.
• B)unit of account.
• C)store of purchasing power.
• D)form of plastic money.

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Definitions:

Total Profits

The sum of net income or net earnings of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Contribution Margin Ratio

A financial metric that calculates the proportion of revenue that exceeds total variable costs, thus indicating how much revenue contributes to fixed costs and profits.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Units Sold

The total quantity of products that have been sold during a particular period.