The System Within a Business for Converting Raw Data from Source

question 37

Multiple Choice

The system within a business for converting raw data from source documents (like invoices,sales receipts,bills,and checks) into information that will help a manager make business decisions is known as a/an

• A) Computer system
• B) Accounting system
• C) Record system
• D) Data system

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Definitions:

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Accounting Profit

The difference between total revenue and explicit costs of a business.

Economic Profit

The profit a company makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of its resources.

Implicit Costs

The opportunity costs of using resources that are owned by the firm or entrepreneur for one purpose instead of another, not directly paid out in cash.