Under Variable Costing,subtract Variable Costs from Sales to Arrive at

question 32

Multiple Choice

Under variable costing,subtract variable costs from sales to arrive at

• A)Gross profit
• B)Gross margin
• C)Contribution margin
• D)Net income

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Definitions:

Price Takers

Market participants who accept the prevailing market price without having the influence to alter it.

Output Level

The total quantity of goods or services produced by a business or economy in a given period.

Market Price

The current market value at which an asset or service can be transacted.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the individual firms. In this market, all firms sell an identical product, there are no barriers to entry or exit, and no single firm can influence the market price.