Comparing Contribution Margin [CM] to Gross Margin [GM], Which of the Following

question 91

Multiple Choice

Comparing contribution margin [CM] to gross margin [GM], which of the following is TRUE?

• A)If Cost of goods sold includes fixed costs, then CM will exceed GM.
• B)If Cost of goods sold does not include any fixed costs, then CM will equal GM.
• C)In the merchandising sector, CM and GM are equivalent terms.
• D)If CM and GM remain constant from one period to the next, operating income has to remain constant as well.
• E)CM is computed after all variable costs are deducted, but GM is computed by deducting only cost of goods sold from revenues.

Interpret and calculate probabilities in real-life contexts, such as weather impact on activities or health test accuracy.

Understand the concept of false positives in testing and calculate the probability of an event based on test accuracy and prevalence.

Apply probability concepts to analyze and solve problems related to employee absenteeism based on weather conditions.

Calculate the probability of outcomes based on different scenarios and conditional factors.

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Definitions:

Critical Rationalists

Individuals who advocate for the approach of systematically questioning and critically examining one's own beliefs and views.

Abraham and Isaac

A biblical story from the Book of Genesis about Abraham's faith being tested by God, who commands him to sacrifice his son Isaac, before stopping him at the last moment.

Essentially

At its core or in its most important aspects.

Confucianism

An ethical and philosophical system developed from the teachings of the Chinese philosopher Confucius, focusing on morality, family loyalty, and respect for elders.