Which of the Following Income Statement Elements Is an Economic

question 50

Multiple Choice

Which of the following income statement elements is an economic outflow that occurs from primary operations?

• A) loss
• B) expense
• C) revenue
• D) deficit

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Definitions:

Just-In-Time Manufacturing

A production strategy that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed in the production process.

Inventory

Goods or materials a business holds for the purpose of resale.

Order

A request to purchase, sell, or supply goods or services.

Total Variable Costs

The cumulative amount of variable expenses incurred in the production of goods or services.