Contribution Margin Is

question 23

Multiple Choice

Contribution margin is

• A) the excess of sales revenue over variable cost
• B) another term for volume in the "cost-volume-profit" analysis
• C) profit
• D) the same as sales revenue

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Definitions:

Specified Output

A defined amount or quality of work that must be produced, typically set as a target or requirement.

Division Profits

The earnings attributed to a specific division or segment within a larger company.

Profit Centers

Segments or areas within a business that are responsible for generating profit, with their performance measured based on the income they produce.

Decision Making

The method of selecting options through recognizing a decision to be made, collecting data, and evaluating different solutions.