The Responsibility Margin Is Calculated By

question 31

Multiple Choice

The responsibility margin is calculated by:

• A)Subtracting fixed costs traceable to a center from its contribution margin.
• B)Subtracting common fixed costs from the contribution margin.
• C)Subtracting variable costs from sales.
• D)Subtracting common fixed costs from variable costs.

---

Definitions:

Monte Carlo Forecasting

A technique using random sampling and statistical modeling to predict outcomes in complex systems or processes.

Monte Carlo Simulation

A computational algorithm that uses repeated random sampling to obtain numerical results, typically used to assess risk or uncertainty in prediction and forecasting models.

Crystal Ball

A forecasting and simulation software by Oracle that is used for predictive modeling, simulation, and optimization.

Critical Path

The longest sequence of activities in a project plan that must be completed on time for the project to finish by its due date.