Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A)Economic profit takes into account all costs involved in producing a product.
• B)Accounting profit is not relevant in preparing the firm's financial statement.
• C)Economic profit always exceeds accounting profit.
• D)Accounting profit is the same as economic profit.

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Definitions:

Customers

Persons or organizations that buy products or services from a company.

Intangible

Describes something that cannot be physically touched or measured, such as services, brand reputation, or intellectual property.

Reliability

The degree to which a service, tool, or system consistently performs according to its intended or required outcome without failure.

Responsiveness

The speed and quality with which an organization reacts to customer inquiries, complaints, or orders.