Which of the Following Is Most Likely to Be True

question 80

Multiple Choice

Which of the following is most likely to be true of economic and accounting profits?

• A) Economic profits are less than accounting profits.
• B) Accounting profits are less than economic profits.
• C) Economic profits plus accounting profits equal zero.
• D) Accounting profits minus economic profits equal zero.

---

Definitions:

Requisitions

Requests or demands for the use or purchase of supplies or equipment within an organization.

Direct Materials

Ingredients essential to the production process that can be directly linked to the creation of a final product and are a fundamental component of it.

Cost Accounting System

A cost accounting system is a method or process used by businesses to track, record, and analyze costs associated with their production operations, aiming to optimize efficiency and profitability.

Manufacturing Cost Accounts

Accounts used to track the costs associated with producing goods, including direct labor, direct materials, and manufacturing overhead.