Which of the Following Formulas Is Used to Compute Operating

question 110

Multiple Choice

Which of the following formulas is used to compute operating income?

• A)Operating income = Sales revenues − Depreciation expenses − Fixed expenses
• B)Operating income = Sales revenues − Variable expenses − Fixed expenses
• C)Operating income = Sales revenues + Fixed expenses − Target profit
• D)Operating income = Sales revenues − Tangible expenses − Target profit

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Definitions:

Defense Mechanism

Psychological strategies developed by the unconscious mind to protect an individual from anxiety or unacceptable thoughts and feelings.

Fixation

In psychoanalytic theory, an obsessive interest or attachment to a developmental phase or aspect of personal interaction.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to explore unconscious thoughts and feelings.

Collective Unconscious

coined by Carl Jung, refers to the part of the unconscious mind that is derived from ancestral memory and experience, common to all humankind.