COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An unincorporated association of two or more persons to pursue a business for profit as co-owners.
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The amount a business earns after subtracting all expenses incurred to generate revenues; also called net income or earnings
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Detailed explanation-1: -Net profit is the amount of money your business earns after deducting all operating, interest, and tax expenses over a given period of time. To arrive at this value, you need to know a company’s gross profit.
Detailed explanation-2: -Net profit is the difference between a company’s revenue and its expenses. It is calculated by subtracting a company’s total costs from its total revenue.
Detailed explanation-3: -Revenue and profit are two very important figures that show up on a company’s income statement. While revenue is called the top line, a company’s profit is referred to as the bottom line.
Detailed explanation-4: -Net profit is the sales income minus all the business costs. This is often shown as the formula: Sales-Direct costs = Gross profit-Overheads = Net profits.
Detailed explanation-5: -Definition: Profit, also called net income, is the amount of earnings that exceed expenses for the period. In other words, it’s the amount of income left over after all the necessary and matched expenses are subtracted for the period.