The Cost Function Y = $10,000

question 3

Multiple Choice

The cost function y = $10,000:

• A)represents a mixed cost.
• B)represents a fixed cost.
• C)represents a variable cost.
• D)is a constant that does not account for costs.
• E)is a variance that has changes in activities.

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Definitions:

Unearned Revenue

Money received by an individual or company for a service or product yet to be provided or delivered.

Drawing

Withdrawals of cash or other assets from a business by the owner for personal use, affecting the owner's equity.

Drawing Accounts

Personal accounts of the owners or partners in a business representing withdrawals of the business's assets for personal use.

Revenue Accounts

are ledger accounts that track the income earned by a company from its normal business operations, which is then reported on the income statement.