When a Contribution Margin Format Is Used for Reporting, Expenses

question 51

True/False

When a contribution margin format is used for reporting, expenses are grouped according to the functions (e.g. sales and distribution, financial) carried out by the organisation.

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Definitions:

Unit Sales

The total quantity of a product sold by a company, not accounting for the revenue generated or any discounts offered.

Break-Even Volume

is the quantity of sales necessary to cover all fixed and variable costs, resulting in zero profit or loss.

Break-Even Point

The point at which total costs equal total revenue, meaning there is no profit or loss.

Total Sales

The aggregate revenue a company generates from selling goods or services within a specified period.