If the contribution margin is $25000 and the revenues are $60000, then all the variable costs will be __________?
Correct answer: D. $35,000
- A. −$85000
- B. −$35000
- C. $85,000
- D. $35,000
Explanation
Variable costs equal revenue minus contribution margin: $60,000 − $25,000 = $35,000. The negative options incorrectly reverse the calculation.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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