For the Following Diagram, Which Item Is the Entity

question 101

Multiple Choice

For the following diagram, which item is the entity?

• A) Students
• B) Name
• C) Address
• D) Street

---

Definitions:

Contribution Margin Income Statement

An income statement format that separates variable costs from fixed costs, focusing on contribution margin.

External Reporting

The provision of financial and non-financial information to external stakeholders, such as investors, creditors, and regulatory agencies, usually formal and standardized.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, including things like rent for factory space and salaries of permanent staff.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.