If Revenues Exceed ________, Profit Is ________

question 103

Multiple Choice

If revenues exceed ________, profit is ________.

• A) total cost; negative
• B) fixed cost; positive
• C) variable cost; negative
• D) total cost; positive

Understand the calculation and significance of total gross margin under different costing approaches.

Recognize the impact of common fixed expenses on net operating income.

Determine the value of inventory under absorption costing.

Understand the calculation of total contribution margin under variable costing.