A Promise to Do (Or Not Do)something in the Future

question 42

True/False

A promise to do (or not do)something in the future counts as consideration.

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Definitions:

Inventory

Inventory consists of goods and materials held by a business for the purpose of resale or as part of the production process.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Selling Price

The price for which a product or service is sold to the customer.

CVP Income Statement

An income statement format used in cost-volume-profit analysis to determine how changes in costs and volume affect a company's profit.