Which Method of Deferred Income Has Most Increased in Use

question 50

Multiple Choice

Which method of deferred income has most increased in use in recent years?

• A) Deferred wage rate increases
• B) COLAs
• C) Lump-sum payments
• D) Two-tier pay plans

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much revenue is contributing to fixed costs and profits.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as overhead costs for running the business.

Contribution Margin

The amount by which a product's sales revenue exceeds its variable costs, indicating how much it contributes to covering fixed costs and generating profit.

Departmental Performance

refers to the evaluation of how individual departments within an organization are performing, often measured by financial results, productivity, and achievement of goals.