Deducting the Total Variable Cost from the Total Cost Results

question 44

Multiple Choice

Deducting the total variable cost from the total cost results in the

• A)overhead.
• B)manufacturing cost.
• C)fixed cost.
• D)semivariable cost.

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Definitions:

Ledger

A detailed financial statement showing all the transactions of a business, used to compile the financial statements.

Unadjusted Trial Balance

A list of all the general ledger accounts and their balances at a specific time before any adjusting entries are made.

Accounting Cycle

The collective process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on financial statements, followed by closure of accounts.

Working Capital

The excess of the current assets of a business over its current liabilities.