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When 4-year-old Aileen goes to the store with her dad and whines for candy at the checkout,she gets the candy.But when she goes with her mom,whining never ends up getting her a candy.Before long,Aileen only whines when she is at the store with her dad.This is called:
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure used to evaluate a company's profitability without the effects of financing and accounting decisions.
Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue contributes to fixed expenses and profit.
Internal Decision-making
The process within an organization to choose actions among several alternatives based on policies, procedures, or the managerial judgment.
Contribution Margin
The difference between sales revenue and variable costs, representing the portion of sales that helps cover fixed costs.
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