Contribution Margin Ratio Is the Ratio of Contribution Margin to ________

question 30

Multiple Choice

Contribution margin ratio is the ratio of contribution margin to ________.

• A) net sales revenue
• B) cost of goods sold
• C) total variable costs
• D) total fixed costs

Be aware of the rules and limits concerning individual retirement accounts (IRAs).

Understand the selection process for new employees.

Learn the essential components of a written notice for employees.

Grasp the different methods of training employees effectively.

---

Definitions:

Cost Method

An accounting method used to value an investment, where the investment is recorded at its original cost without adjusting for market changes.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Deferred Income Taxes

A liability on the balance sheet that results from differences in the timing of recognition of income and expenses for tax and financial reporting purposes.

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual installments.