Managerial Accountants

question 59

Multiple Choice

Managerial accountants:

• A)often work as line managers in an organization.
• B)are found throughout an organization but not on cross-functional teams
• C)are found throughout an organization and work on cross-functional teams.
• D)are found primarily at lower levels of the organizational hierarchy.
• E)are found primarily at higher levels of the organizational hierarchy.

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Definitions:

Depreciation Expense

The allocated amount of the cost of a tangible fixed asset written off as an expense in the company's accounts over its useful life, reflecting the asset's consumption or loss of value.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes toward covering fixed expenses and generating profit.

Variable Selling Costs

Expenses that vary directly with the volume of products sold, such as commissions and shipping fees.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.