Which of the Following Would Be Included in Operating Income

question 41

Multiple Choice

Which of the following would be included in operating income?

• A) interest income for a manufacturing firm
• B) rent income for a leasing subsidiary
• C) gain from sale of marketable securities for a retailer
• D) dividend income for a service firm
• E) none of the answers are correct

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Definitions:

Operating Budgets

Detailed projections of income and expenses associated with the day-to-day operations of a business for a specific period, usually one year.

Allocate Resources

The process of distributing available resources, such as funds, materials, and labor, to specific tasks, projects, or departments within an organization.

Labour

The human effort, both physical and mental, used in the production process.

Fixed Budget

A budget that remains constant, regardless of changes in business activity levels.