Total Variable Profit Is Calculated by Subtracting the Variable Cost

question 60

Short Answer

Total variable profit is calculated by subtracting the variable cost from ____________________ ____________________.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement, affecting net income.

Adjusting Entry

Journal entries made at the end of an accounting period to update income and expense accounts so that the income statement reflects the revenues earned and expenses incurred during the period.

Interest-Bearing Note

A debt security that pays interest to the holder at regular intervals until maturity, at which point the principal is repaid.

Proceeds

The total amount of money received from a transaction before any deductions are made.