Examlex
Which of the following is not a governance mechanism used to align the interests of managers and stockholders?
Variable Costs
Variable costs are expenses that change in proportion to the activity or volume of a business, such as raw materials and labor costs that vary with production levels.
Contribution Margin
Contribution margin represents the difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.
Sales Revenue
The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.
Variable Cost
Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.
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