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VLD [36.1K]
4 years ago
8

In its first year of​ business, Talula, Inc. produced and sold 600 units. If Talula uses variable​ costing, ________. A. its val

ue of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing B. its operating income for the period will be lower than under absorption costing C. its operating income will be the same as under absorption costing D. its operating income for the period will be higher than under absorption costing
Business
1 answer:
klasskru [66]4 years ago
4 0

Answer:

C. its operating income will be the same under absorption costing.

Explanation:

VARIABLE COSTING is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises. Under an absorption cost method, management can push forward costs to the next period when products are sold.

Variable costing is a costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

You might be interested in
Sheridan Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is avai
Rzqust [24]

Answer:

$27.18 per unit

Explanation:

The computation of the average cost per unit is shown below:

= (Beginning inventory units × price per unit + purchase inventory units × price per unit + purchase inventory units × price per unit ) ÷ (Beginning inventory units + purchase inventory units + purchase inventory units)

= (350 units × $24 + 370 units × $29 + 280 units × $31) ÷ (350 units + 370 units + 280 units)

= ($8,400 + $10,730 + $8,680) ÷ (1,000 units)

= ($ 27,810) ÷ (1,000 units)

= $27.18 per unit

6 0
3 years ago
If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, it
SCORPION-xisa [38]

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, its real per capita output will have increased by about $167. This is further explained below.

<h3>What is real per capita output?</h3>

Generally, The real gross domestic product per capita is a figure that is calculated by dividing the entire economic output of a nation by the total population of that country after adjusting for inflation.

In conclusion, If the actual production of a DVC goes from $200 billion to $260 billion and at the same time its population goes from 100 million to 110 million, then the real output per capita will have climbed by around $167.

Read more about real per capita output

brainly.com/question/15694733

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3 0
2 years ago
Joey's first task as a new employee at a Technology firm is to write a computer program to perform a predictable task. Joey can
sveticcg [70]

Answer: Option A

       

Explanation: In simple words, critical thinking refers to the process under which an individual or an entity analyse and evaluate their objectives with the intent of forming a judgement for then purpose.

In the given case, joey has a wide variety of alternatives to choose to how to perform then task and the supervisor will form judgement about his work on the basis of the choices he made for the work assigned.

7 0
3 years ago
Jameson works for Fishy-Mart Corporation, a chain of superstores that sell large quantities of seafood. His job is to locate fut
gulaghasi [49]

Answer:

<em>b. self-dealing. </em>

Explanation:

Self-dealing is the behavior of a trustee, solicitor, administrative employee,  

or other trustee who comprises of taking advantage of their position in a contract and  behaving in their own interests rather than in the interests of trust beneficiaries,  corporate investors, or their customers.

7 0
3 years ago
Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply?
Rainbow [258]

Answer:

The correct answer is option a and c.

Explanation:

The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.

At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.

The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.

8 0
3 years ago
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