How Is Total Profit for a Firm Calculated

question 111

Multiple Choice

How is total profit for a firm calculated

• A)marginal revenue minus average cost
• B)average revenue minus average cost
• C)marginal revenue minus marginal cost
• D)total revenue minus total cost

Contrast the ABC system with traditional costing systems.

Compute customer margins using ABC data.

Allocate overhead costs to activity cost pools based on resource consumption.

Identify the distribution of resource consumption across activity cost pools.