On a Multi-Step Income Statement,the Operating Expenses Are Subtracted from ________

question 162

Multiple Choice

On a multi-step income statement,the operating expenses are subtracted from ________ to arrive at operating income.

• A) net sales
• B) cost of goods sold
• C) net profit
• D) gross profit

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Definitions:

Budget Preparation

The process of estimating future financial performance and resource requirements, forming the basis of a financial plan.

Sales Budget

An estimate of the expected total sales revenue and the necessary selling expenses for a specific period, often broken down by product line or category.

Production Budget

An estimation of the costs associated with the production process, including raw materials, labor, and overhead expenses, for a specific period.

Production Budget

A financial plan that estimates the number of units to be produced to meet sales goals and inventory requirements.