The Budgeted Contribution Margin Per Composite Unit for the Budgeted

question 166

Multiple Choice

The budgeted contribution margin per composite unit for the budgeted sales mix can be computed by dividing the ________.

• A) total budgeted contribution margin by the actual total units
• B) total budgeted contribution margin by the total budgeted units
• C) actual total contribution margin by the total actual total units
• D) actual total contribution margin by the total budgeted units

---

Definitions:

Process Costs

Costs that are incurred in the production process, often relating to the manufacturing of goods, which typically include labor, materials, and overhead expenses.

Productive Process

The procedures involved in creating a product or service, encompassing everything from the acquisition of raw materials to the manufacture, labor, and overhead costs.

Materials Markup

The sum included in the goods' cost price to cover both overhead expenses and profit.

Time and Materials Pricing

A pricing method where customers are charged based on the actual time spent and materials used on their project.