Examlex
In each group, select the letter of the item that is not parallel with the other items in the group.
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Contribution Margin
The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.
Avoidable Fixed Costs
Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service that is not contributing to profits.
Unavoidable Allocated Fixed Corporate Costs
Fixed expenses that are distributed across different departments or products within a company, and cannot be avoided or eliminated.
Contribution Margin
Contribution margin represents the portion of sales revenue that remains after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.
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