Which of the Following Is Not True Regarding a Credit

question 57

Multiple Choice

Which of the following is not true regarding a credit card expense?

• A)Credit card expense may be classified as a "discount" deducted from sales to get net sales.
• B)Credit card expense may be classified as a selling expense.
• C)Credit card expense may be classified as an administrative expense.
• D)Credit card expense is not recorded by the seller.
• E)Credit card expense is a fee the seller pays for services provided by the card company.

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Definitions:

Total Cost

The complete cost of production, including fixed and variable costs.

Lawn-Mowing

The process of cutting the grass in a garden, lawn, or yard to maintain a desired level of neatness and health.

Profit Per Unit

The amount of income earned from selling one unit of a product after deducting the costs associated with its production and sale.

Profit-Maximizing Output

The level of production where a firm achieves the highest possible profit, where marginal cost equals marginal revenue.