Throughput Contribution Is Equal to Revenues Minus Direct Material and Direct

question 51

True/False

Throughput contribution is equal to revenues minus direct material and direct labour costs.

Compute cost of goods manufactured and cost of goods sold.

Differentiate between financial and managerial accounting.

Distinguish between line and staff departments.

Understand the concept of decision-making in managerial accounting.

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Definitions:

Balanced Scorecard

A strategic planning and management system that organizations use to communicate objectives, align business activities to the vision and strategy, and monitor performance against strategic goals.

Strategic Priority

A focus on long-term goals that are deemed most important for an organization’s success and allocation of resources.

United States Environmental Protection Agency

A federal agency tasked with protecting human health and the environment by enforcing regulations based on laws passed by Congress.

Private Costs

Costs that are directly borne by the individuals or organizations engaging in an economic activity, excluding external effects.