What Is the Purpose for Determining Contribution Margin

question 95

Multiple Choice

What is the purpose for determining contribution margin?

• A)To show the contribution by department toward covering indirect costs
• B)To help determine whether or not to eliminate a department
• C)To show the effect on net income each department
• D)All of these answers are correct.

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Definitions:

Person-Situation Debate

A theoretical discourse in psychology about whether human behavior is more influenced by personal traits or situational factors.

Personality Psychology

A branch of psychology focused on studying individual differences in people's thoughts, feelings, and behaviors, and how these are organized into unique personality patterns.

Hub Topic

A central or core subject around which discussions, ideas, or activities are concentrated in an academic, professional, or social context.

Personality

The assembly of traits and qualities that shape a person's distinctive individuality.