1. a Contract That Is No Longer ______

question 54

Essay

1. A contract that is no longer ______
profitable to the company.
2. An entity may have an implicit obligation ______
even if it is not explicitly noted
in the sales contract.
3. Sales that are comprised of ______
several individual components.
4. The party acting as an agent for ______
the seller.
5. The method to allocate sales prices ______
to individual components of a sales
bundle where the fair value of the
undelivered item is subtracted from
the overall purchase price.
6. The method used to account for ______
long-term contracts that do not
recognize profits before the completion
of the project.
7. The account used in the percentage-of ______
completion and completed-contract
methods to accumulate costs and
recognize profits.
8. Cash or other assets an entity ______
receives in return for the provision
of goods or services.
9. The actions a company takes to ______
add value.

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Definitions:

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.

Fixed Expenses

Costs that remain constant for a set period and do not vary with changes in activity level, production volume, or sales, such as lease payments and utility bills. This is a rephrased definition of Fixed Costs.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Contribution Margin

The difference between sales revenue and variable costs, serving as a measure to assess the profitability of products or services.