ERPs Can Either Be Industry-Specific or Based Around "Best Practices

question 39

True/False

ERPs can either be industry-specific or based around "best practices" of various sized companies.

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Definitions:

Contribution Format

An income statement format that separates fixed and variable costs, showing contribution margin which is sales revenue minus variable costs.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to covering fixed costs.

Variable Expenses

Costs that vary in proportion to changes in the level of activity or volume of production.

Contribution Format

A type of income statement format that separates fixed and variable costs, helping in determining the contribution margin of sold goods or services toward fixed costs and profits.