The Contribution by Profit Center (CPU) Expands the Contribution Margin

question 54

Multiple Choice

The contribution by profit center (CPU) expands the contribution margin income statement by distinguishing:

• A) Variable and fixed costs.
• B) Short-term and long-term fixed costs.
• C) Controllable and noncontrollable fixed costs.
• D) Noncontrollable and untraceable fixed costs.
• E) Controllable, noncontrollable, and untraceable fixed costs.

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Definitions:

Journalize

The process of recording financial transactions in a journal, which is the first step in the accounting cycle.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement and correct.

Adjusted Balance

The account balance after adjustments have been made for interest, payments, and charges.

Bank Statement

A document issued by a bank summarizing an account's transactions, including deposits, withdrawals, and current balance, over a specific period.