Which of the Following Is Not Subtracted from Sales Revenues

question 91

Multiple Choice

Which of the following is not subtracted from sales revenues to determine pretax profit?

• A)depreciation
• B)fixed costs
• C)interest expense
• D)variable costs

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Definitions:

Unimpeded Entry

A market condition where there are no barriers for new firms to enter and compete in the industry.

Purely Competitive Firm

A company that operates in a market where there are many buyers and sellers, none of which can influence market prices significantly.

Long Run

A period of time during which all factors of production and costs are variable, in contrast to the short run where some are fixed.

Market Supply

The total amount of a product or service that is available to consumers, determined by the sum of all individual suppliers' outputs in the market.