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3 years ago

The dollars available from each unit of sales to cover fixe

Business

1 answer:

lbvjy [14]3 years ago

5 0

Answer:

False

Explanation:

Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.

The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.

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A cover letter may be searched for keywords<br> true or false

Vaselesa [24]

True, it may be searched for keywords

7 0

2 years ago

Read 2 more answers

Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under

7nadin3 [17]

Answer: d. a deduction of $80,000 under financing activities.

Explanation:

Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.

The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.

Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.

6 0

2 years ago

Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net reali

NeTakaya

Answer:Hi

Explanation:Hi

8 0

2 years ago

Vestel Corporation, a Turkish company that manufactures battery-powered tools, is considering the idea of selling its products

photoshop1234 [79]

Answer:

The given approach would be "Proxy indicators".

Explanation:

A proxy indicator would be a parameter that often used substitute throughout that would be harder to quantify individually.
This would be an ambiguous indication of either estimate which may well approximate or otherwise be indicative of such an occurrence or without the existence of either a specific measurement.

So really the answer above would be appropriate.

3 0

3 years ago

A contribution approach income statement ______. reports both gross margin and net income is prepared primarily for external rep

kvasek [131]

Answer:

separates costs into fixed and variable component

can assist with management decision making

Explanation:

The contribution margin may be defined as when we deduct the expenses of the variable from sales. Where contribution margin shows the organization revenue is contributing to net income and fixed cost.

The statement of contribution margin income tells of the earnings at various stages of operations.

This report of income is not used for external reporting purposes but rather for internal decision making by the management.

Therefore according to the above description, the last two statements are correct.

6 0

2 years ago