PRODUCTIVE ACTIVITY Definition

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PRODUCTIVE ACTIVITY usually is defined as including activities that have economic value in the marketplace. A more contemporary definition of productive activity includes any activity that produces a valued good or service, even if it is not actually paid for.

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ROA see RETURN ON ASSETS.

CONTRIBUTION MARGIN PER UNIT, also known as dollar contribution margin per unit, is the selling price per unit minus the variable cost per unit. The "contribution" represents that portion of sales revenue that is not consumed by variable cost, thereby contributing to the coverage of fixed cost.

 

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