Which of the Following Formulas Is Used to Calculate the Contribution

question 204

Multiple Choice

Which of the following formulas is used to calculate the contribution margin ratio?

• A)(Sales - Fixed expenses)\(\div\) Sales
• B)(Sales - Cost of goods sold)\(\div\) Sales
• C)(Sales - Variable expenses)\(\div\) Sales
• D)(Sales - Total expenses)\(\div\) Sales

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Definitions:

General Journal

A general journal is a fundamental accounting record where all day-to-day financial transactions of a business are initially recorded.

Ledger Accounts

Financial records within a ledger that summarize the transactions related to a company's assets, liabilities, equity, revenues, and expenses.

Trial Balance

A financial spreadsheet where the totals from all accounts are gathered into columns for debits and credits, serving to verify the mathematical accuracy of a firm's accounting records.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and equity.