Figure 3-2 a Company Usually Processes 20,000 Orders at a Total

question 175

Multiple Choice

Figure 3-2 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed.
Refer to Figure 3-2. What is the cost of resource usage?

• A) $300,000
• B) $240,000
• C) $30
• D) $60,000

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Definitions:

Net Income

The total revenue minus total expenses, indicating the company’s profit or loss over a specific accounting period.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Adjust Account Balances

The process of updating ledger accounts at the end of a period to reflect accurate financial information for reporting.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.