The Total Contribution Margin Is the Difference Between

question 48

Multiple Choice

The total contribution margin is the difference between:

• A) total sales and overheads.
• B) total sales and cost of goods sold.
• C) total sales revenue and total variable costs.
• D) total sales revenue and total expenses.

---

Definitions:

Actual Manufacturing Overhead Costs

The real costs incurred from indirect manufacturing expenses such as utilities, rent, and salaries not directly tied to production.

Specific Job

A particular task or project within a business that requires specific skills or expertise, often related to job costing in accounting.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours.

Estimated Annual Overhead Costs

An approximation of the indirect costs that a business expects to incur over a year in its operations.