Which of the Following Statements About Contribution Margin and Gross

question 15

Multiple Choice

Which of the following statements about contribution margin and gross margin in CVP analysis is TRUE?

• A)Contribution margin equals total revenue minus cost of goods sold.
• B)Contribution margin equals total revenue minus non-variable costs.
• C)Gross margin equals total revenue minus cost of goods sold.
• D)Service companies can compute a gross margin but not a contribution margin.
• E)Gross margin equals total revenue minus non-variable costs.

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Definitions:

Dynamic Model

A representation of a system or process that captures changes over time and the complex interactions between various components.

Relapse

A regression or return to a previous state of health deterioration or substance use after a period of improvement or recovery.

Phasic Responses

Reactions that occur in distinct phases, typically in response to stimuli or changes in the environment.

Tonic Responses

Steady, prolonged physiological responses or activities in the body not directly associated with a phase of intermittent, sudden action.