Michael Quinn Used Regulation D,Rule 505 to Do a DPO

question 117

True/False

Michael Quinn used Regulation D,Rule 505 to do a DPO of his company's stock to investors and raised nearly $4.6 million.

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Definitions:

Variable Costing

An accounting method that only includes variable costs in the cost of goods sold and analyzes fixed costs separately.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold (COGS), highlighting the profitability of manufacturing activities.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period cost.