Which of the Following Terms Refers to the Amount of Revenue

question 16

Multiple Choice

Which of the following terms refers to the amount of revenue a firm receives for the sale of its products, minus its costs of production, as measured by its accountants?

• A)earnings
• B)retained earnings
• C)economic, or real, profit
• D)dividend

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Definitions:

Overhead

The ongoing business expenses not directly attributable to creating a product or service, such as rent, utilities, and administrative costs.

Standard Labor Hours

The set amount of time expected to be used to complete a specific task or manufacture a product under normal conditions.

Direct Materials Quantity Variance

The difference between the actual amount of direct materials used in production and the standard amount expected to be used, valued at the standard cost.

Overhead

Ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.