Indirect Expenses Are Subtracted from the Total Direct Operating Margin

question 59

True/False

Indirect expenses are subtracted from the total direct operating margin to calculate total operating income.

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Definitions:

Additional Money

Funds that are required or provided beyond the initially agreed amount or investment.

Simple Interest

Simple interest is a method of calculating interest where the interest charge is computed only on the original principal, and not on the interest accrued over time.

Account

A record or statement that reflects the financial transactions and their effect on an asset, liability, equity, revenue, or expense.

Regression Equation

A mathematical formula that describes the relationship between one dependent variable and one or more independent variables.