What Is the Contribution Margin

question 92

Multiple Choice

What is the contribution margin?

• A)the difference between sales and fixed costs
• B)the difference between fixed and variable costs
• C)the difference between sales and variable costs
• D)the difference between sales and total costs

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company, reflected in its statement of cash flows.

Operating Activities

Daily activities of a business related to producing and delivering its products and services, which generate the majority of a company's cash flow.

Investing Activities

Part of the cash flow statement that shows the inflow and outflow of cash from activities related to investments like securities, equipment, or properties.

Stock Dividend

A distribution of additional shares of stock by a corporation to its stockholders.