Throughput Contribution Equals

question 82

Multiple Choice

Throughput contribution equals

• A)Sales revenue less fixed costs.
• B)Sales revenue less product costs.
• C)Sales revenue less direct materials costs.
• D)Sales revenues less manufacturing overhead.

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Definitions:

Income

Income earned, particularly when it's consistent, from work or investment returns.

Efficient Allocation

An economic condition where resources are distributed in a way that maximizes the welfare of society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to the cost of producing it.

Risk

Uncertainty about future outcomes.

Risk-Averse

A description of an individual or organization that prefers to avoid uncertainty and is willing to sacrifice some potential gain to avoid risk.