A) Product B, Since It Has the Highest Contribution Margin

question 2

Multiple Choice

• A) product b, since it has the highest contribution margin per unit.
• B) product b, since it has the highest price.
• C) product a, since it has the highest contribution margin per labour hour.
• D) product B, since it has the lowest costs.

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Definitions:

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life, reflecting the reduction of value over time.

Non-Current Asset

An asset expected to provide economic benefits beyond one year, such as property, plant, and equipment.

Useful Life

The estimated duration a fixed asset is expected to be productive and functional for a company, impacting depreciation calculations.

Adjusting Entry

A record created at the conclusion of a financial period to distribute revenues and expenses to the timeframe they were truly incurred.