Which of the Following Is Not a Base Against Which

question 8

Multiple Choice

Which of the following is not a base against which profits are measured?

• A)Owners' equity
• B)Owners' and creditors' funds provided
• C)Intangibles
• D)Revenues
• E)Productive assets

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Definitions:

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting to allocate expenses.

Cost Formula Equation

An equation used to predict the total cost of production, combining both fixed and variable costs.

High-low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in the activity level but not proportionately.