Which of the Following Statements Is Typically Not True About

question 60

Multiple Choice

Which of the following statements is typically not true about profit?

• A) Profit is the basic reward for risk taking as well as the reward for efficiency
• B) A higher profit per unit is generally justified for small special orders
• C) Products and services requiring highly technical personnel usually require higher profit
• D) Per unit profit is generally lower for complex products that require special tooling and training to produce
• E) A higher profit is generally justified for a firm that repeatedly turns out superbly reliable technical products

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Definitions:

Journal Entry

A record of a financial transaction in the general journal or other ledger, representing debits and credits to accounts.

Fringe Benefits

Benefits provided to employees in addition to wages and salaries.

Revenues And Expenses

The income a business earns from its operations and the costs incurred to generate that income.

Payroll Taxes

Taxes that are withheld from employees' wages by their employer and paid to the government, often including social security and medicare taxes.