If Revenues Exceed ________, Economic Profit Is ________

question 134

Multiple Choice

If revenues exceed ________, economic profit is ________.

• A) total cost; negative
• B) total cost; positive
• C) variable cost; negative
• D) variable cost; positive

---

Definitions:

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Journal Entries

Records in accounting that document financial transactions in the books of accounts.

Raw Materials

Raw materials are the basic substances or components used in the manufacturing process to produce finished goods.