{"id":43815,"date":"2024-04-15T21:34:53","date_gmt":"2024-04-15T21:34:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43815"},"modified":"2024-04-15T21:34:53","modified_gmt":"2024-04-15T21:34:53","slug":"with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/","title":{"rendered":"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: Only 1.<\/p>\n<p>Contribution is the excess of sales over variable costs. It is the amount of revenue that is available to cover fixed costs and contribute to profit. Contribution can be calculated by the following formula:<\/p>\n<p>Contribution = Sales &#8211; Variable costs<\/p>\n<p>Contribution is an important concept in cost-volume-profit analysis. It can be used to calculate break-even point, target profit, and margin of safety.<\/p>\n<p>Option 2 is incorrect because contribution is not the excess of sales over total costs. Total costs include both variable and fixed costs. Therefore, contribution is always less than or equal to total sales.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-43815","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:34:53+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/","og_locale":"en_US","og_type":"article","og_title":"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:","og_description":"[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:34:53+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/","name":"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T21:34:53+00:00","dateModified":"2024-04-15T21:34:53+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-theory-of-contribution-which-of-the-following-statement-is-are-correct-1-contribution-is-the-excess-of-sales-over-variable-costs-2-contribution-is-the-excess-of-sales-over-to\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"With reference to the theory of contribution, which of the following statement is\/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=43815"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/43815\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=43815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=43815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=43815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}