Select the Appropriate Classification of Each of the Costs Listed

question 34

Multiple Choice

Select the appropriate classification of each of the costs listed below.* Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Fixed manufacturing overhead

• A)deduction from Revenue in calculation of Contribution Margin
• B)deduction from Revenue in calculation of Gross Margin
• C)deduction from Revenue in calculation of both Contribution Margin and Gross Margin
• D)deduction from both Contribution Margin and Gross Margin in calculating Operating Income

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Definitions:

Unlimited Personal Liability

A legal obligation where an individual can be held personally responsible for the debts and obligations of a business entity without any limit on the amount.

General Partners

Individuals in a partnership who are responsible for the management of the partnership, have unlimited liability for its debts, and share the partnership's profits.

Limited Partners

Part-owners of a partnership who have limited liability to the debts of the partnership and do not participate in day-to-day management.

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from their own assets.