The Following Data Pertains to Activity and Costs for Two

question 77

Multiple Choice

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range,the mixed cost for July was:

• A)$10,000
• B)$35,000
• C)$15,000
• D)$40,000

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and interest, from its total revenue.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.

Insurance Expense

The amount a company spends on insurance policies to cover various risks, recorded as an expense in the accounting period in which it is incurred.