The Contribution Margin of a Department Is the Difference Between

question 34

Multiple Choice

The contribution margin of a department is the difference between:

• A)its net sales and the total expenses.
• B)its gross profit on sales and its direct expenses.
• C)its gross profit on sales and its indirect expenses.
• D)its net sales and its cost of goods sold.

---

Definitions:

Daily Settlements

The process by which futures contracts are revalued at the end of each trading day based on the closing market prices to reflect gains and losses.

Sum

The total result of adding two or more numbers or quantities together.

Derivatives Exchanges

Specialized marketplaces where derivatives securities, such as futures and options, are traded.

Electronic Trading

The use of computer systems, often connected to the internet, to execute buy and sell orders in financial markets without the need for a physical trading floor.