Flint Enterprises Had the Following Cost and Production Information for April

question 47

Multiple Choice

Flint Enterprises had the following cost and production information for April: Inventory increased by 3,000 units during April.How much greater will Flint Enterprises' income be under absorption costing than under variable costing?

• A)$60,000
• B)$315,000
• C)$340,000
• D)$400,000

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Definitions:

Authorized

This term indicates that permission has been given by a relevant authority or person allowing specific actions or activities.

Treasury Stock

Shares that were once issued and outstanding but were subsequently reacquired by the issuing company and are held in the company’s treasury.

Outstanding

Something that is exceptionally good or remaining unpaid or unresolved.

Indenture

A formal legal agreement, contract, or document, especially one regarding debt or bonds, specifying terms and conditions.