All Fixed Costs Are Listed ________ on a Contribution Margin

question 201

Multiple Choice

All fixed costs are listed ________ on a contribution margin income statement.

• A)below the contribution margin line
• B)above the gross profit line
• C)above the contribution margin line
• D)below the gross profit line

---

Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows, used to assess the profitability of an investment or project.

Hurdle Rate

The minimum rate of return on an investment that a company or investor is willing to accept, often used in capital budgeting to evaluate potential investments.

Unrealistic Status Quo

A reference to an impractical or fantasy-based current state of affairs, often used in strategic planning or decision-making to denote assumptions that do not hold.

Expected Time Horizon

The specific duration in which an event is anticipated to occur or a goal is expected to be achieved.