In Contribution Margin Analysis,the Effect of a Difference in the Number

question 84

True/False

In contribution margin analysis,the effect of a difference in the number of units sold,assuming no change in unit sales price or cost,is termed the quantity factor.

---

Definitions:

Beginning Inventory

The cost of products on hand for selling at the commencement of an accounting cycle.

Inventory Turnover

A financial ratio measuring how many times a company's inventory is sold and replaced over a period.

Cost of Goods Sold

A duplicated term; refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The value of goods available for sale at the end of an accounting period, after accounting for all sales and purchases during the period.