Christopher Columbus

question 56

Multiple Choice

Christopher Columbus

• A) was trained as a sailor through his long service to Italy.
• B) was a man of little ambition.
• C) believed that Asia could only be reached by sailing east.
• D) believed the Americas consisted of a few islands.
• E) thought the world was much smaller than it is in reality.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in the cost of goods sold and inventory valuation.

Manufacturing Firms

Companies that use labor, equipment, and raw materials to produce finished goods.

Service Firms

Companies that provide intangible products or services to consumers or other businesses rather than physical goods.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income. Also called profit-volume ratio.