A Time Ticket Is a Source Document Used by an Employee

question 206

True/False

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

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Definitions:

Contribution Margin Ratio

A profitability ratio that measures the percentage of sales revenue that exceeds variable costs, indicating how much contributes to fixed costs and profit.

Variable Cost Ratio

A measure of a company's variable costs as a percentage of sales, which shows the proportion of sales that is consumed by variable costs.

Profit-Volume Ratio

A measure that illustrates how profits will change with a change in volume, showing the relationship between profit and sales levels.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with the level of activity but having a portion that remains constant.