On a CVP Graph, in the Area Where the Revenue

question 122

Multiple Choice

On a CVP graph, in the area where the revenue line appears below the total cost line, the vertical distance separating the two lines represents what?

• A)Contribution margin
• B)Operating loss
• C)Operating income
• D)Variable costs

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Definitions:

Due Date

The specific day by which a payment, task, or obligation must be completed or submitted.

Remittance

The action of sending money in payment or as a gift.

Discount Period

A set timeframe in which a buyer can pay less than the full invoice amount if they pay before the period expires.

Discount Date

The date on which a bill or note is discounted, determining the time left until its maturity and the amount to be received.