The Income Summary Account Is Also Called

question 95

Multiple Choice

The income summary account is also called

• A) the imprest account
• B) the clearing account
• C) the adjustments account
• D) the zero-out account

---

Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output, including materials and labor directly involved in production.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Total Cost

The combined amount of all expenses and costs associated with the production and sale of a good or service.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.