The Program Expense Ratio Is Calculated as Follows

question 104

Multiple Choice

The program expense ratio is calculated as follows:

• A) Program service expenses / Total expenses
• B) Program service expenses + supporting service expenses / Total expenses
• C) Total expenses / Program service expenses
• D) Total expenses / Program service expenses + supporting service expenses

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Definitions:

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much earnings can contribute towards fixed costs and profit.

Combined Margin

refers to the total margin generated by a product or entity after accounting for various types of costs, merging both gross and net margins to provide an overall profitability measure.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period.

Turnover

A measure of the efficiency and effectiveness of a company's operations, often calculated as total revenues divided by total assets.