Information Is Data Converted into Useful,meaningful Context

question 74

Multiple Choice

Information is data converted into useful,meaningful context.What are data characteristics that change or vary over time?

• A)Facts.
• B)Variables.
• C)Supplies.
• D)Vulnerable.

Apply break-even analysis in different scenarios to assess the financial viability of decisions.

Recognize the limitations and assumptions underlying break-even and incremental analysis.

Evaluate the effects of changes in the sales mix on the break-even point and profitability.

Understand the calculation and implications of margin of safety in financial planning.

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Definitions:

Contribution Margin

The amount of revenue remaining after subtracting the variable costs of producing a product, serving as an indicator of the product's profitability.

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.