Accounting Profit Can Be Defined As

question 64

Multiple Choice

Accounting Profit can be defined as:

• A)The ratio represented by accounting profit divided by economic profit
• B)The difference between accounting profit and economic profit
• C)The surplus of sales over direct costs available for distribution to the firm's five largest stakeholders
• D)The surplus of revenues over costs available for distribution to the firm's owners

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.

Buffer

A zone of protection or safety margin that reduces the risk of fluctuations or uncertainties affecting the primary system or process.

Rope

A length of strong cord made by twisting or braiding together strands of natural fibers, synthetic fibers, or wire.