Gross Margin and Contribution Margin Mean the Same Thing; They

question 6

True/False

Gross margin and contribution margin mean the same thing; they are just different ways of describing the result of sales less COGS (either variable or fixed).

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Definitions:

New Category Entry

The process of a company or brand launching a product or service in a market segment where it did not previously compete.

Product-line Extension

This refers to the process by which a company introduces additional items in the same product category under the same brand, often to target a new segment or increase market share.

E-reader

A portable electronic device designed specifically for reading digital books and periodicals.

Target Market

The specific group of consumers at which a company aims its products and services, identified through characteristics like demographics, behaviors, and needs.