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ACCT 311 Discussion 2

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Each member of the group will select one question below. You may not select a question that has already been posted by another group member. Please be sure that you clearly identify the question number you have selected.
1. What is meant by a product’s contribution margin? How is this ratio useful in planning business operations?
2. What is meant by the term operating leverage? Is high operating leverage a positive or negative position?
3. Compare and contrast the arguments of treating fixed manufacturing costs as product costs/period costs.
4. Under absorption costing, how is it possible to increase net operating income without increasing sales? Is this ethical in all situations?
5. Relate the IMA standard of competence to Biblical principles.

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