Expenses That Fall Outside the Regular Operations of a Business

question 154

Multiple Choice

Expenses that fall outside the regular operations of a business are ________.

• A)not shown in the income statement of a merchandiser
• B)treated as current assets and are shown as merchandise inventory
• C)included under the other revenues and expenses section of the income statement
• D)not considered for the calculation of net income

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Definitions:

ATC

Average Total Cost, which refers to the total cost per unit of output, including both fixed and variable costs.

MC

In economics, MC stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Product Demand Curves

Graphical representations showing the relationship between the price of a product and the quantity of the product demanded.