________ tells what portion of the total revenues remains after covering variable costs to contribute toward meeting fixed expenses and earning a profit.
A)The full-absorption statement
B)The break-even selling price
C)The contribution percentage
D)Cost-plus pricing

Question

Quizplus · Accepted Answer

The contribution percentage represents the portion of revenue that is left after covering variable costs, which can be used to meet fixed expenses and earn a profit. This percentage is crucial in determining the break-even point and making decisions regarding pricing and cost control. The full-absorption statement refers to a method of accounting for all costs, both fixed and variable. The break-even selling price and cost-plus pricing are methods used to determine the price of a product or service, but do not directly relate to the contribution percentage.

________ Tells What Portion of the Total Revenues Remains After