What Is the Term Applied to the Excess of Net

question 76

Multiple Choice

What is the term applied to the excess of net sales over the cost of goods sold?

• A)Gross sales
• B)Profit from operations
• C)Profit
• D)Gross profit

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Definitions:

Cash Disbursements

The payments a company makes during a period, including expenses, debt payments, and purchase of assets.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs associated with maintenance, utilities, and quality control.

Fixed Selling Expenses

Fixed selling expenses are those costs associated with selling a product that do not change with the level of production or sales, such as salary of sales staff and rent for office space.

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.