The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate _____________?
Correct answer: B. target net income
- A. target net cost
- B. target net income
- C. target net gain
- D. target net lossCompare Credit Cards
Explanation
Tax on target operating income is deducted from that operating income to obtain target net income: operating income minus income tax equals net income. The calculation assumes the stated tax rate applies to the operating income.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The revenue is $11000 and all the variable cost is $6000, then the contribution margin would be ____________?
If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be _____________?
If the contribution margin of bundle is $4000 and the revenue of the bundle is $16000, then the contribution margin percentage for bundle will be _____________?
An effect of fixed cost to change in operating income is classified as ___________?
If the budgeted sales in unit is 50 and the breakeven sales in unit is 12, then the margin of safety in units will be __________?
The type of distribution, which consists of alternative outcomes and probabilities of events is classified as _____________?