Sipho Corporation manufactures a single product. Last year, the company's variable costing net operating income was $90,900. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900. What was the absorption costing net operating income last year?
A. $21,900
B. $90,900
C. $112,800
D. $69,000
Answer: D
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A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This purchase would be recorded with a:
A. Debit to Treasury Stock for $15,000 B. Debit to Additional Paid-In Capital for $14,000 C. Credit to Treasury Stock for $15,000 D. Credit to Treasury Stock for $1,000
Which of the following approaches to budgeting is most likely to contain the details of salaries (such as number of personnel within each position) as well as the details of each type of expenditure other than salaries (such as supplies and travel)?
a. object-of-expenditure approach b. performance approach c. planning-programming-budgeting approach d. zero-based budgeting approach
Direct selling involves _____
a. personal contact with consumers in their homes and a consumer's ordering via mail, phone, fax, or computer b. nonpersonal media and a consumer's ordering via mail, phone, fax, or computer c. personal contact with consumers in their homes and phone solicitations initiated by a retailer d. nonpersonal media and phone solicitations initiated by a retailer
On the income statement, a merchandising company reports the cost of merchandise inventory that has been sold to customers
Indicate whether the statement is true or false