Excess Capacity,or Unused Available Space,can Be Unproductive Because It May

question 66

True/False

Excess capacity,or unused available space,can be unproductive because it may result in the purchase of additional equipment or space.

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Definitions:

Contribution Margin

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

Segment Margin

The amount of profit or loss generated by a particular segment of a business, helping to assess the financial contribution of different parts of the business.

Gross Cost

The total cost incurred before any deductions or allowances.

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investment and non-operational assets.