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bekas [8.4K]
3 years ago
15

George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the num

ber of units sold, then net operating income under the absorption method for the year will:
A) be equal to the net operating income under variable costing.


B) be greater than the net operating income under variable costing.


C) be equal to the net operating income under variable costing plus total fixed manufacturing costs.


D) be equal to the net operating income under variable costing less total fixed manufacturing costs.
Business
1 answer:
laiz [17]3 years ago
5 0

Answer:

Correct option is B.

<u>Be greater than the net operating income under variable costing.</u>

Explanation:

As, in factor costing the closure stock cost will exclude the component of fixed assembling overheads. in any case, if there should arise an occurrence of assimilation costing, the completion stock will have a component of fixed expense. In this way Cost of products sold in less in Absorption costing, and overall gain will be more if there should arise an occurrence of ingestion costing.

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The journal entry when writing off an account as uncollectible under the allowance method is:

Allowance for Doubtful Debts     ( Dr.)              xxxxx

Accounts Receivable       ( Cr.)                                                 xxxxx

The allowance technique involves putting aside a reserve for terrible debts that are expected in the future. The reserve is based on a percent of the income generated in a reporting length, possibly adjusted for the danger associated with positive clients.

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The allowance approach requires a small commercial enterprise to estimate at the cease of the 12 months how an awful lot awful debt they have got, while the direct write-off method we could owners write off horrific debt whenever they determine a patron might not pay an invoice.

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2 years ago
What types of documents can workers create using DTP? advertisements envelopes databases note cards spreadsheets
Alex73 [517]
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3 years ago
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An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower
Klio2033 [76]

Answer:

The opportunity cost will be Buying a new lawnmower

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3 years ago
Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ______
Alex

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _<u>higher</u><u>_</u>and real GDP to be <u>higher.</u>

<h3>
What is Expansionary fiscal policy ?</h3>

Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.

In a situation were real GDP fall below potential real GDP this tend to lead to increase in both inflation rate and real GDP.

Inconclusion the inflation rate will be _<u>higher</u><u>_</u>and real GDP will be <u>higher.</u>

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2 years ago
For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a
Nana76 [90]

Explanation:

Breakeven=fixed cost/selling price - variable cost

so 14,300000/380-250

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