Figure 12-5

question 103

Multiple Choice

Figure 12-5. The following information pertains to the three divisions of Yang Company:
Refer to Figure 12-5.What are the average operating assets for Division B?

• A)$125,000
• B)$120,000
• C)$18,000
• D)$420,000

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Definitions:

Year 1

The first year in a given time period, often used as a baseline for analysis in financial contexts or project planning.

Variable Costing

An accounting method that considers only variable production costs (materials, labor, and overhead) in the cost of goods sold and excludes fixed costs.

Operating Loss

This occurs when a company's operating expenses exceed its gross profits, indicating that the business operations are not profitable.

Year 1

Indicates the first year of a specific period of time, operation, or accounting period, setting the baseline for subsequent years.