Actual expenses (AE) for resources (i.e.,charges for materials,energy,direct labor including short-term labor,and overtime) are subtracted from revenues (R) to yield the
A)short-term contribution margin.
B)long-term contribution margin.
C)traditional costing margin.
D)general expenses.

Question

Quizplus · Accepted Answer

The calculation of subtracting actual expenses from revenues is used to determine the short-term contribution margin, which is an important factor in determining the profitability of a product or service. The other options listed are not applicable to this calculation.

Actual Expenses (AE) for Resources (I