Fixed Cost Contribution Equals

question 132

Multiple Choice

Fixed cost contribution equals:

• A) price times the average fixed cost
• B) price plus the average variable cost
• C) average variable cost plus average fixed cost
• D) break-even quantity times price
• E) price minus the average variable cost

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Definitions:

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for business operations.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions over a period.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts of a business.

Purchases Journal

A record of transactions specifically used for tracking all purchases of goods and services on credit.