Your Store Buys Ice Cream for $1

question 92

Multiple Choice

Your store buys ice cream for $1.50 a half litre (not including general and administrative expenses of $0.75) and sells it for $4 a half litre.Which of the following statements is true?

• A)Your gross profit per half litre is $2.50.
• B)Your gross profit per half litre is $1.75.
• C)$2.50 is recorded in an account titled Gross Profit.
• D)$1.75 is recorded in an account titled Gross Profit.

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Definitions:

Organic Organization

An organizational structure that is flexible, adaptive, and less formalized, enabling quick responses to changes in the environment.

Formal Rules

Explicitly stated policies or statutory regulations that govern behavior and procedures within organizations or institutions.

Fundamentals Of Organizing

involves the basic principles and practices of arranging the structure, roles, and processes in an organization to achieve efficiency and goals.

Span Of Control

The number of subordinates or direct reports that a manager or leader can effectively oversee and manage.