Multiple Choice
South Avenue Publishing produces self-help books. The company's profit is the:
20
views
4. Merchandising Operations
Net Sales
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Scholarships, grants, and work-study money all reduce the _____ of higher education.
A
net cost
B
net sales
C
operating income
D
gross revenue
Verified step by step guidance1
Understand the context of the question: Scholarships, grants, and work-study money are financial aids provided to students to help reduce the financial burden of higher education.
Identify the key term being asked: The question is asking about the financial term that represents the cost of higher education after accounting for these aids.
Define the relevant terms: 'Net cost' refers to the total cost of something after subtracting any discounts, financial aids, or reductions. In this case, it is the cost of higher education after scholarships, grants, and work-study money are applied.
Eliminate incorrect options: 'Net sales' refers to revenue from sales after returns and discounts, which is unrelated to education costs. 'Operating income' is a measure of profitability in business, and 'gross revenue' refers to total income before deductions, both of which are not relevant here.
Conclude that the correct term is 'net cost,' as it accurately describes the reduced cost of higher education after financial aids are applied.
9:04mWatch next
Master Net Sales:Sales Discounts (Gross Method) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
