Which of the Following Defines Total Profit

question 238

Multiple Choice

Which of the following defines total profit?

• A)average revenue minus average cost
• B)marginal cost times output
• C)marginal revenue minus marginal cost
• D)total revenue minus total cost
• E)average cost divided by output

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Definitions:

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Administrative Expense

Expenses that are not directly tied to the production of goods or services, including salaries of executive officers, legal and office expenses.

Sales Commissions

Financial compensation paid to sales representatives, usually a percentage of the sales they generate, as an incentive to increase sales performance.

Indirect Labor

Labor costs of employees who support the production process but are not directly involved in the active production of goods or services.