Selling Price Per Unit Less Variable Costs Per Unit Is

question 63

Multiple Choice

Selling price per unit less variable costs per unit is known as:

• A)contribution margin.
• B)direct cost.
• C)avoidable cost.
• D)all of the above.

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Definitions:

Safety Stock

Inventory kept on hand to protect against stockouts caused by fluctuations in demand or supply chain disruptions.

Lead Time

Lead time is the amount of time that elapses from the start of a process until its completion, important in manufacturing and supply chain management.

Safety Stock

Extra inventory kept on hand to prevent stockouts caused by variations in supply and demand.

Lead Time

The time interval between the initiation and completion of a process, such as the period from placing an order to its delivery.