________ Is What Remains When You Subtract Fixed and Variable

question 3

Multiple Choice

________ is what remains when you subtract fixed and variable costs and taxes from revenues.

• A) Operating profit
• B) Gross profit
• C) Net profit
• D) Gross margin

---

Definitions:

Power Generation

The process of producing electrical energy from other forms of energy, such as coal, natural gas, wind, or solar power.

Insulating Cost Allocation

The approach in assigning overhead and indirect costs to goods or services to avoid fluctuations in cost assignments.

Cost Allocation Method

A technique used to assign indirect costs to products, services, or departments based on relevant cost drivers.