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Management · Q253

Management Accounting

Graduate and Post Graduate · Management · question 253

Q253

Variable cost is subtracted from fixed costs to calculate

A.
unit income
B.
fixed income
C.
operating income
Answer
D.
marginal income

Answer: Option C

Solution

Answer: Option C
Solution:
Variable cost is subtracted from fixed costs to calculate operating income. Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).