Answer: c. Contribution margin ratio = 1 − Variable cost ratio
Explanation:
The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.
The formula is,
Contribution Margin Ratio = Sales - Variable Costs / Sales
Breaking the formula down further we have,
Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales
Contribution Margin Ratio = 1 - Variable Costs / Sales
Variable Cost/Sales is the Variable Cost Ratio.
So Option C is correct.
Answer: (A) Stakeholder
Explanation:
The stakeholder is refers to the person in an organization that basically helps in managing all the stake in business either in external or internal type.
The main responsibility of stakeholder is to managing the resources in an organization and managing all the investment related business approach and the supply chain.
According to the given question, Vincent is the retired CEO of the company and he investing the capital in the startup company that helps in creating the software.
Therefore, The Vincent is basically refers to the startup firm's stakeholder.
Answer: a.results in more accurate product costs
Explanation:
In a company that has multiple departments, using multiple overhead rates can help give a clearer view of product costs as costs are apportioned based on the activities in a department.
For example, in a Manufacturing company with a shipping department, you would find that it would be more accurate if for instance, machine hours are used in the Manufacturing department as opposed to labour hours being used in the Shipping department.
This method therefore gives a more accurate measure of the cost of producing different goods in a company which will go further to enable management to price products appropriately as well.
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A.) Private universities can cost three times as much to attend as public universities.
Hope this helps :)
