Asked by
Talwinder Khakh
on Nov 13, 2024Verified
The dollar amount of the controllable margin
A) is usually higher than the contribution margin.
B) is usually lower than the contribution margin.
C) is always equal to the contribution margin.
D) cannot be a negative figure.
Controllable Margin
The amount of profit or contribution margin that a manager can directly influence by controlling costs and generating revenues.
Contribution Margin
The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.
Dollar Amount
A specific value of money in terms of the currency of the United States, expressed in dollars.
- Ascertain the controllable margin and appreciate its role in performance appraisal.
Verified Answer
AE
Learning Objectives
- Ascertain the controllable margin and appreciate its role in performance appraisal.