Which of the Following Is a Correct Definition of Operating

question 152

Multiple Choice

Which of the following is a correct definition of operating income?

• A) Sales minus variable expenses.
• B) Sales minus variable expenses and traceable fixed expenses.
• C) Contribution margin minus traceable and common fixed expenses.
• D) Income before interest and taxes (EBIT).

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Definitions:

Time And Motion Studies

An efficiency technique that analyzes the time required for and movements involved in a task with the goal of improving productivity.

Desired Performance

The level or standard of work output or outcomes expected from an individual or group.

Actual Performance

The real, observed output or results achieved by an individual, group, or organization, as opposed to expected or theoretical outcomes.

Gantt Chart

A visual project management tool that displays tasks or events in relation to time, allowing for easy tracking of project schedules.