After the Completion of Production,standard and Actual Costs Are Compared

question 100

Multiple Choice

After the completion of production,standard and actual costs are compared to determine the ____ of the production process.

• A)effectiveness
• B)complexity
• C)homogeneity
• D)efficiency

---

Definitions:

Operating Income

An indication of a company's profitability from its core business operations, excluding income and expenses from unusual, non-operational activities.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, contributing to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in total despite fluctuations in the level of output or sales volume, such as rent or salaries.

Operating Income

The profit realized from a business's core operations, excluding income from investments and the effects of taxes and interest.