What Do the Letters 'R,' 'E,' and 'A' Stand for in the Term

question 42

Short Answer

What do the letters 'R,' 'E,' and 'A' stand for in the term "REA model"?

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Definitions:

Unit Selling Price

The price for which a single unit of a product is sold, not including discounts or promotions.

Unit Variable Costs

Costs that vary directly with the level of production or output, unlike fixed costs, which remain constant regardless of production volume.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit a company makes from its operations.

Unit Selling Price

The price at which an individual unit of a product is sold to customers.