Income from Operations Is Arrived After Considering All Except

question 57

Multiple Choice

Income from operations is arrived after considering all except

• A) administrative salaries.
• B) interest income.
• C) the cost of sales.
• D) sales returns and allowances.

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Definitions:

Predetermined Overhead Rate

An estimated charge used for cost allocation within a budget or accounting period, calculated by dividing the estimated manufacturing overhead costs by an allocation base.

Machine-Hours

A measure of production output or work, indicating the total time machines are operated.

Bill Of Materials

A document that shows the quantity of each type of direct material required to make a product.

Direct Material

Raw materials that can be directly associated with the production of a specific product.