The Per Dollar Contribution Toward Fixed Operating Costs and Profits

question 41

Multiple Choice

The per dollar contribution toward fixed operating costs and profits provided by each dollar of sales is the

• A) profit margin.
• B) contribution margin.
• C) expense ratio.
• D) fixed coverage ratio.

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Definitions:

Account Titles

Names given to various accounts used in accounting to classify and organize financial transactions.

Trial Balance

A bookkeeping worksheet listing the balance of all ledgers for checking the balance of debits and credits, serving as a preliminary step to financial statements preparation.

Recording Process

The systematic procedure of capturing financial transactions in accounting records.