Excess Income Over and Above the Expected Amount of After-Tax

question 46

Multiple Choice

Excess income over and above the expected amount of after-tax operating income is called:

• A)extraordinary profit.
• B)remaining profit.
• C)economic profit.
• D)monetary profit.

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Definitions:

Lot Size

The quantity of items that are processed, ordered, or delivered at one time.

JIT Suppliers

Suppliers that adhere to Just-In-Time manufacturing principles, delivering materials and components exactly when needed, minimizing inventory costs.

Holding Cost

The cost associated with keeping inventory in storage, including expenses such as warehousing, insurance, and spoilage.

Product Storage

The act of keeping goods or materials in a designated space until they are needed for usage or sale.