A Marginal Change Is a

question 41

Multiple Choice

A marginal change is a

• A)change that involves little,if anything,that is important.
• B)large,significant adjustment.
• C)change for the worse,and so it is usually a short-term change.
• D)small,incremental adjustment.

---

Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax, representing the efficiency of the company's core business.

Fixed Costs

Expenses that remain constant regardless of the amount of goods or services produced or sold, including lease payments, wage payments, and insurance premiums.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Contribution Margin Ratio

The percentage of each sales dollar remaining after deducting variable costs, indicating how much contributes to covering fixed costs and generating profit.