The Difference Between Total Revenues and Total Variable Costs Is

question 72

True/False

The difference between total revenues and total variable costs is called contribution margin.

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Definitions:

Book Income Before Income Tax

This is the income an entity has earned before any taxes have been deducted, as reported in the financial statements.

Tax Depreciation

The depreciation expense allowed by tax authorities for tax calculation purposes, reflecting the reduction in value of assets over time.

Book Depreciation

The amount of depreciation expense that has been allocated for a fixed asset in a company's financial records.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.