The Dollar Amount That Provides for Covering Fixed Costs and Then

question 253

Multiple Choice

The dollar amount that provides for covering fixed costs and then provides for operating income is called ________.

• A) variable cost
• B) total cost
• C) contribution margin
• D) margin of safety

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Definitions:

Consolidated Balance Sheet

A consolidated financial statement that displays the combined assets, liabilities, and equity of a parent company and its subsidiaries as a single entity.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Currency Exchange Rates

The price at which one country's currency can be converted into another's, important for international trade and investments.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, usually a fiscal quarter or year.