Formula to calculate contribution margin is
A. revenue - all variable cost
B. revenue + all variable cost
C. cost + revenue
D. revenue - breakeven units
Answer: Option A
Solution(By Examveda Team)
Formula to calculate contribution margin is revenue - all variable cost. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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