In the Graph Below, the Area Between the Lines AC

question 151

Multiple Choice

In the graph below, the area between the lines AC and OB after point 'E' represents:

• A)fixed costs.
• B)breakeven point.
• C)operating loss.
• D)operating income.

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Definitions:

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, highlighting net profit or loss.

Merchandiser

A business entity engaged in selling goods directly to consumers or other businesses.

Cost Flow

The manner in which costs move through a firm, from initial acquisition of raw materials to final sale of finished goods.

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.