Where Should Rhonda Put the Administrative Expenses for Her Business

question 40

Multiple Choice

Where should Rhonda put the administrative expenses for her business when she prepares the financial forecasts?

• A)Administrative costs are subtracted from amount of sales.
• B)In the operating expenses section
• C)Administrative costs are included in cost of goods sold
• D)In the interest expense section

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Definitions:

Aggregate Demand

The aggregate need for all products and services in an economy, measured at a specific price level and during a particular time frame.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, with price as a function of quantity demanded.