The Direct and Indirect Costs Associated with Producing a Specific

question 27

Multiple Choice

The direct and indirect costs associated with producing a specific product are subtracted from the net revenues received from the sale of this product.The resulting figure is called:

• A)Net income
• B)Operating profit
• C)Cash flow
• D)Gross profit margin
• E)The liquidity ratio

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in inventory valuation and other financial measurements.