An Accountant Buys a Supply of Pencils to Be Used

question 342

Multiple Choice

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product?

• A) Business
• B) Process materials
• C) Raw material
• D) Convenience
• E) Consumer

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Definitions:

Total Variable Cost

The total variable cost is the sum of all variable expenses that change in proportion to the volume of output or production.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

TR

Refers to Total Revenue, which is the total income a company earns from the sale of its goods and services.