The Amount by Which a Department's Revenues Exceed Its Direct

question 37

Multiple Choice

The amount by which a department's revenues exceed its direct expenses is:

• A) Net sales.
• B) Gross profit.
• C) Departmental profit.
• D) Contribution margin.
• E) Departmental contribution to overhead.

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar products or services are sold at different prices to different buyers.

Physically Separated

A state or condition where two or more entities are not connected or in direct contact with each other, often referring to geographical distance.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price fluctuations, with greater sensitivity indicating higher elasticity.

Single Price

A market condition where a good or service is sold at the same price to all customers, regardless of purchase quantity or location.