What Is the Term Applied to the Excess of Net

question 86

Multiple Choice

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

• A)Income before income taxes
• B)Income from operations
• C)Net income
• D)Gross profit

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Definitions:

Actual Costs

The real costs incurred for materials, labor, and overhead in producing goods or delivering services, as opposed to estimated costs.

Standard Costs

Estimated pre-determined costs used for budgeting and measuring performance.

Standard Direct Labor Rate

The predetermined cost per hour for labor directly involved in manufacturing a product or delivering a service.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.