The Contribution-Margin Approach Focuses Attention on _____ Rather Than on ______

question 100

Multiple Choice

The contribution-margin approach focuses attention on _____ rather than on ______.

• A) fixed costs; variable costs
• B) gross margins; net margins
• C) total costs; fixed costs
• D) overheads; fixed costs
• E) variable costs; total costs

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Definitions:

Royalties

Payments made to the owners of intellectual property, such as authors and inventors, for the use of their work.

Franchising

A business model that allows individuals or entities to operate a branch of an established company with its brand and business strategy.

U.S. Businesses

Companies or enterprises that are located within the United States of America and are subject to its regulations and economic policies.

Franchise

A franchise is a type of business whereby a franchisee is given the license by a franchisor to operate under the brand's name and system.