In a CVP Graph,the Area Between the Total Cost Line

question 89

Multiple Choice

In a CVP graph,the area between the total cost line and the total revenue line represents total

• A)contribution margin.
• B)variable costs.
• C)fixed costs.
• D)profit.

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Definitions:

FMV

Fair Market Value; the price that property would sell for on the open market between a willing buyer and a willing seller.

Basis

In tax terms, it refers to the amount of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on the sale or disposition of the property.

Inventory

Assets that are held for sale in the ordinary course of business, or in the process of being produced for such sale, or in the form of materials to be consumed in the production process.

Sole Proprietor

An individual who owns and operates a business by themselves, without forming a corporation or a partnership, bearing full responsibility for the business's debts and obligations.