Revenue,less Variable Costs,less Traceable Fixed Costs,is Called the Contribution Margin

question 27

True/False

Revenue,less variable costs,less traceable fixed costs,is called the contribution margin.

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Definitions:

Annual Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business during a given fiscal year.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period of time.

Yearly Cash Inflows

The total amount of money received by a company over a year, from various sources including sales, investments, and financing.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.