Which of the Following Expense Accounts Would Not Normally Be

question 89

Multiple Choice

Which of the following expense accounts would not normally be tested by listing all debits and examining any significant items?

• A)Legal expense.
• B)Miscellaneous expense.
• C)Repairs and Maintenance.
• D)Payroll expense.

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.

Contribution Margin

Contribution margin is the amount of revenue remaining after deducting the variable costs of producing a product, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that fluctuate based on the level of a business’s activity.

Total Direct Labor Cost

The total expenses incurred from labor directly involved in the production of goods or services.