Net Operating Profit Is Defined as

question 11

Multiple Choice

Net operating profit is defined as

• A)Operating income minus income taxes.
• B)Sales minus variable costs.
• C)Contribution margin minus traceable fixed costs.
• D)Contribution margin minus traceable and allocated fixed costs.

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Definitions:

Imperfectly Competitive Market

A market structure where all firms have some control over the prices because the products are differentiated and there are few participants.

Total-Product Schedule

A chart that shows the maximum output of a good achievable from different levels of input usage, holding technology constant.

Purely Competitive

A market structure characterized by a large number of small firms, homogeneity of product, and free entry and exit from the market.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input in production.