Net Income Is Simply the Difference Between Revenue and Cost

question 332

True/False

Net income is simply the difference between revenue and cost of goods sold.

---

Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or categorized to determine their effect on a dependent variable.

Multicollinearity

A statistical phenomenon where several independent variables in a model are correlated, impacting the model’s accuracy.

Dependent Variables

Variables in an experiment or model that are expected to change as a result of changes in the independent variables.

Multicollinearity

A situation in multiple regression where one predictor variable in the model can be linearly predicted from the others with a substantial degree of accuracy.