Throughput Contribution Equals ________

question 63

Multiple Choice

Throughput contribution equals ________.

• A) variable costs minus fixed costs
• B) revenues minus all direct labor costs
• C) revenues minus all direct material cost of goods sold
• D) revenues minus manufacturing overhead

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on current earnings before interest and taxes.

Cash Coverage Ratio

A fiscal indicator assessing a corporation's capability to fulfill its debt commitments using the cash flow generated from its operations.

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a certain period.