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:

Inventory Costing

Inventory costing is the method used to assign costs to inventory items, determining the cost of goods sold and ending inventory value.

Net Income

The final amount a company earns post all deductions, including expenses and taxes, from its revenue.

Gross Profit Method

An inventory estimating method that calculates cost of goods sold based on gross profit margin, used for interim financial statements or when inventory is destroyed.

Gross Margin Ratio

A financial metric that indicates the percentage of sales revenue remaining after deducting the cost of goods sold (COGS), used to assess a company's financial health.