Under the Contribution Approach to the Income Statement,the Difference Between

question 123

Multiple Choice

Under the contribution approach to the income statement,the difference between sales and ________ is contribution margin.

• A) cost of goods sold
• B) manufacturing costs
• C) all variable expenses
• D) all fixed expenses

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Definitions:

Commissions

Earnings based on a percentage of the sales made by an employee or agent, as a form of incentive pay.

Pay Equity

The principle of offering equal pay for work of equal value, aiming to eliminate wage discrimination based on gender or other unrelated factors.

Equal Pay

The principle of compensating employees equally for work of equal value regardless of gender, race, or other non-performance-related factors.

Skill-Based Pay

A compensation system that pays employees based on the skills they have acquired, rather than their job title or position alone.