The Contribution Margin Ratio Always Increases When The

question 32

Multiple Choice

The contribution margin ratio always increases when the:

• A) variable expenses as a percentage of sales increase.
• B) variable expenses as a percentage of sales decrease.
• C) break-even point increases.
• D) break-even point decreases.

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Definitions:

Internal Consistency

Internal consistency is a measure of the reliability of a test or scale; it assesses the extent to which all parts or items of a survey measure the same concept or construct and therefore reflects the interrelatedness of the items within the test.

Cronbach's Alpha

A measure of internal consistency or reliability of a psychometric instrument, indicating how well the items in a test measure the same underlying concept.

Internal Consistency

A measure of the correlation between multiple items in a test that assess the same construct.

Pre-Tests

Assessments given before a treatment or intervention to establish baseline levels against which changes can be measured.