Which of the Following Items Is Not Included in the Calculation

question 69

Multiple Choice

Which of the following items is not included in the calculation of net income but is included in the calculation of comprehensive income?

• A)Unrealized holding gain on available-for-sale marketable securities
• B)Unrealized holding gain on trading marketable securities
• C)Gain from early extinguishments of bonds
• D)Gain arising from sale of available-for-sale marketable securities

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Definitions:

Variable Manufacturing Overhead

Costs in the manufacturing process that vary with the level of production output, such as utilities or indirect materials, but do not directly correlate to specific units of production.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual activity level.

Variable Overhead Standards

The predetermined costs associated with variable overheads that are expected to be incurred under normal operating conditions.

Direct Labor-hours

The total hours worked directly on manufacturing a product or providing a service, used as a basis for allocating labor costs in product costing.