Profit Is the Difference Between

question 86

Multiple Choice

Profit is the difference between

• A) assets and liabilities
• B) the incoming cash and outgoing cash
• C) the assets purchased with cash contributed by the owner and the cash spent to operate the business
• D) the amounts received from customers for goods or services and the amounts paid for The inputs used to provide the goods or services

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Definitions:

Plastic Parts

Components or materials made out of plastic, often used in manufacturing and production of various goods.

Direct Materials

Essential parts that directly contribute to the fabrication of particular merchandise or services.

Product Cost

The total amount incurred to manufacture a product, including direct materials, labor, and overhead expenses.

Machine Operator's Wages

Compensation paid to employees who operate machinery as part of the production process, typically considered direct labor costs.