Contribution Margin Ratio Is Computed by

question 144

Multiple Choice

Contribution margin ratio is computed by

• A)dividing contribution margin by operating income.
• B)dividing contribution margin by sales revenue.
• C)dividing sales revenue by contribution margin.
• D)dividing operating income by contribution margin.

Know the terms related to shipping and their impact on freight costs and title passage.

Recognize the documentation used in the purchasing process and their purposes.

Understand the effects of buying and returning merchandise on financial statements.

Appreciate the differences between the perpetual and periodic inventory systems.

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Definitions:

Orchids

A diverse and widespread family of flowering plants with complex, often colorful and fragrant flowers.

Opossums

Marsupials native to the Americas known for their ability to play dead as a defensive mechanism and their omnivorous diet.

Clear-cutting

A forestry or logging practice where most or all trees in an area are uniformly cut down.

Old-growth Characteristics

Features typical of ancient forests, such as large trees, significant amounts of dead wood, and high biodiversity.