A company's sales margin:
a. must, by definition, be greater than the firm's net sales.
b. has basically the same meaning as the term "contribution margin."
c. is computed by dividing sales revenue into income.
d. is computed by dividing income into sales revenue.
e. shows the sales dollars generated from each dollar of income.
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The cost object under the control of a manager is called a __________________ center.
a. investment
b. cost
c. responsibility
d. revenue
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As the internal transfer price is increased,
a. profits in the buying division increase.
b. overall corporate profits increase.
c. profits in the selling division increase.
d. profits in the selling division and the overall corporation increase.
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