Under the Contribution Approach,variable Selling and Administrative Expenses Are Used

question 25

Multiple Choice

Under the contribution approach,variable selling and administrative expenses are used to calculate ________.Under the absorption approach,variable selling and administrative expenses are used to calculate ________.

• A)contribution margin; operating income
• B)gross margin; operating income
• C)contribution margin; gross margin
• D)gross margin; contribution margin

---

Definitions:

Unconditioned Response

An unconditioned response is an automatic, natural reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Response

A learned reaction to a previously neutral stimulus, which has become associated with an unconditioned stimulus through classical conditioning.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any need for learning.

Conditioned Stimulus

A neutral stimulus that, after it's combined with an unconditioned stimulus, results in triggering a conditioned response over time.