The Majority of the Costs for the Software Industry Are

question 271

True/False

The majority of the costs for the software industry are the costs of disseminating the software, which is a fixed cost.

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Definitions:

Shareholders' Equity

The residual interest in the assets of an enterprise after deducting liabilities, representing the ownership interest of shareholders.

Retained Earnings

The portion of net income that is kept by the company rather than distributed to its shareholders as dividends.

Contributed Surplus

The value of anything of value that is given to a company in exchange for shares, above the par value of the shares.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.