________ Costs Change According to How Many Goods Are Produced

question 6

Multiple Choice

________ costs change according to how many goods are produced.

• A)Expected
• B)Current
• C)Fixed
• D)Variable

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Definitions:

Gross Profit

The disparity between income generated and the expenses incurred in producing a product or delivering a service, prior to subtracting costs for overheads, employee salaries, taxes, and interest expenses.

Sales Discounts

Reductions granted from the listed price of goods or services, often used as a marketing strategy to encourage early payment or increase sales volume.

2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if payment is made within 10 days; otherwise, the net amount is due in 30 days.

Sales Return

goods returned by the customers to the seller after the sale, reducing the gross sales figure.