Flint Enterprises Had the Following Cost and Production Information for April

question 40

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

---

Definitions:

Total Sales

The aggregate revenue generated from the sale of goods or services by a company within a specific period.

Collections

The process of pursuing payments of debts owed by individuals or businesses, often conducted by creditors or assigned collection agencies.

Patent Amortization

The gradual expensing of the cost of a patent over its useful life, reflecting the consumption of its economic benefits over time.

Accounts Receivable

Money owed by customers to a company for products or services that have been delivered or used but not yet paid for.