COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Amounts earned from selling products or services
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Occurs when expenses are more than revenues
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Amounts earned from revenues less expenses incurred
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Detailed explanation-1: -Net income: Net profit can be defined as the amount of money you earn after deducting allowable business expenses. It is calculated by subtracting total expenses from total revenue.
Detailed explanation-2: -A net loss appears on the company’s bottom line or income statement. Net loss or net profit is calculated using the following formula: Net Loss (or Net Profit) = Revenues-Expenses.
Detailed explanation-3: -There are three main measures of profit. These are gross profit, operating profit and net profit.
Detailed explanation-4: -Revenue, also known simply as “sales", does not deduct any costs or expenses associated with operating the business. Profit is the amount of income that remains after accounting for all expenses, debts, additional income streams, and operating costs.
Detailed explanation-5: -Profit is simply total revenue minus total expenses. It tells you how much your business earned after costs.