Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable costing, ________.
A) its operating income for the period will be higher than under absorption costing
B) its operating income for the period will be lower than under absorption costing
C) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under
absorption costing
D) its operating income will be the same as under absorption costing
A) its operating income for the period will be higher than under absorption costing
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Indicate whether the statement is true or false
The near privity approach was adopted by courts in contrast to the strict privity rule of the:
A. Balancing approach. B. Ultramares approach. C. Reasonably Foreseeable Users approach. D. Restatement approach.
One of the potential drawbacks of a ________ is that salespeople might simply wait to make some sales instead of increasing their overall number of sales
A) monthly call report B) behavioral objective C) performance objective D) sales contest E) customer relationship management report
Richard exchanges a building with a basis of $35,000, and subject to a liability of $25,000, for land with a FMV of $50,000 owned by Bill. Bill takes the building subject to the liability. What is the amount of Richard's realized gain?
A) $0 B) $15,000 C) $25,000 D) $40,000