INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 62

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[Borrowing money from relatives | cutting low-priority expenses] is the preferable way to deal with budget deficits.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis is a method for assessing how fluctuations in costs and sales volumes impact the operating and net income of a business.

Depreciation Expense

The allocated amount of the cost of a tangible fixed asset written off as an expense in the company's accounts over its useful life, reflecting the asset's consumption or loss of value.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes toward covering fixed expenses and generating profit.

Variable Selling Costs

Expenses that vary directly with the volume of products sold, such as commissions and shipping fees.