Which of the Following Is Correct

question 133

Multiple Choice

Which of the following is correct?

• A)Sales - variable costs - fixed costs = contribution margin
• B)Total revenue - variable costs = contribution margin
• C)Total revenue - fixed costs = contribution margin
• D)Total revenue - profit = contribution margin

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Definitions:

Non-Value-Added Activity

Processes or tasks that consume resources but do not add value or enhance the product or service from the customer's perspective.

Partly Finished Production

Items or goods that have undergone some stages of the production process but are not yet complete.

Life Cycle Costing

An approach to assessing the total cost of ownership, factoring in all costs of acquiring, owning, and disposing of a system or product.

Annual Profit Calculations

The process of determining the net profit or loss for a business over a one-year period.