Which of These Are Not Alternative Names for the Same

question 15

Multiple Choice

Which of these are not alternative names for the same thing?

• A)Gross profit; profit.
• B)Cost of sales; cost of goods sold.
• C)Statement of comprehensive income; profit and loss statement: statement of financial performance.
• D)None of the above, i.e., all are alternative names for the same thing.

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Definitions:

Direct Labor

Labor costs directly attributable to the production of goods, including wages paid to workers who are actively involved in the manufacturing process.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Variable Manufacturing Costs

Costs that vary in proportion to changes in the level of production, including direct materials, direct labor, and variable overhead.

Operating Income

Earnings before interest and taxes (EBIT), calculated by deducting operating expenses, including the cost of goods sold (COGS) and other operating expenses, from gross profit.