How Is the Contribution Margin Calculated When Utilizing Variable Costing

question 88

Multiple Choice

How is the contribution margin calculated when utilizing variable costing?

• A)Sales less variable cost of goods sold
• B)Sales less variable cost of goods sold,less variable selling and administrative expenses
• C)Sales less cost of goods sold
• D)Sales less variable cost of goods sold,less variable selling and administrative expenses,less fixed cost of goods sold,less fixed selling and administrative expenses

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Furniture Factory

A manufacturing site where raw materials are processed and assembled into furniture for use and sale.

Assembly

The process of putting together individual pieces to create a complete product or compiling and linking program code into a usable software program.

Finishing

The process of completing or giving the final touches to a product, workpiece, or surface to achieve the desired appearance or functionality.