Profits May Be Defined As

question 4

Multiple Choice

Profits may be defined as:

• A)expenses plus net income.
• B)costs plus revenues. 
• C)revenues plus expenses.
• D)revenues minus expenditures.

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Definitions:

Product Costs

Costs directly associated with the creation of a product, including direct materials, direct labor, and overhead.

Total Variable Cost

The sum of all costs that vary with the level of production or sales, such as materials and direct labor.

Direct Costs

Expenses that can be directly traced to a specific cost object, such as a product, department, or project.

Incremental Manufacturing Cost

The additional cost incurred to produce one additional unit of product, including materials, labor, and overhead costs.