Which of the Following Represents the Excess of the Selling

question 131

Multiple Choice

Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit?

• A)Gross margin
• B)Operating income
• C)Net income
• D)Unit contribution margin

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Definitions:

Direct Labour Costs

Expenses incurred for workers who are directly involved in the manufacturing or production of goods or services.

Cost Of Goods Manufactured

The total cost incurred to produce goods that are completed within a specific accounting period.

Raw Materials Inventory

The total cost or value of raw materials held in stock that are yet to be used in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the production process, including maintenance, utilities, and salaries of support staff.