Flexible Budget Contribution Margin Is Equal to ________

question 12

Multiple Choice

Flexible budget contribution margin is equal to ________.

• A) actual contribution margin per unit times actual units sold of each product
• B) actual contribution margin per unit times budgeted units sold of each product
• C) budgeted contribution margin per unit times budgeted units sold of each product
• D) budgeted contribution margin per unit times actual units sold of each product

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Definitions:

Best Use

Optimal allocation or application of resources to maximize efficiency or value.

Positive Statement

An objective statement based on factual information or data that can be tested or rejected through observation.

Normative Statement

A value-based statement that expresses an opinion about what ought to be rather than what is factual.

Oil Refineries

Facilities where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and heating oil.