Simplify

question 42

Multiple Choice

Simplify:

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Definitions:

Pretax Net Income

The amount of income earned by a business before taxes have been deducted.

Absorption Costing

A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a unit of a product.

Pre-Tax Net Income

The income that a company earns before any taxes are deducted, reflecting the earnings from its core business operations.

Variable Costs

Expenses that change in proportion to the activity or volume of a business operation.