A(n) _______ loss occurs when the reduced price is below the actual cost.
A. net
B. operating
C. absolute
D. incurred
B
To determine the correct answer, let's break down the question and consider the options provided.
The question asks for the type of loss that occurs when the reduced price is below the actual cost.
Looking at the provided options:
A. net loss refers to the overall loss after deducting all expenses from the revenue. It does not specifically address the scenario mentioned in the question.
B. operating loss pertains to the loss incurred in the regular course of business operations. It could potentially be the correct answer.
C. absolute loss does not have a specific definition in this context.
D. incurred loss means a loss that has already occurred, but it doesn't specifically address the situation mentioned in the question.
Now, considering the options and the question, the most appropriate answer is B. operating loss. This type of loss occurs when the reduced price falls below the actual cost, indicating a loss during regular business operations.