Chamiching Makes Hacksaw Blades In the First Year,variable Costs Accounted for Half of the First

question 11

Multiple Choice

Chamiching makes hacksaw blades.Inventory values are determined using the first in,first out (FIFO) method.Production and sales data for the first three years appear below. $\begin{array}{ccc}\text { Hacksaw blades } & \text { Sold } & \text { Produced } \\\text { Yr } 1 & 18,000 & 22,000 \\\text { Yr } 2 & 25,000 & 23,000 \\\text { Yr } 3 & 37,000 & 35,000\end{array}$ $$\begin{array} { l l c } & \text { Sales price } & \text { Full Cost } \\Yr 1 & \$ 10.00 & \$ 6.00 \\\text { Yr } 2& \$ 11.00 & \$ 6.60 \\Yr 3 & \$ 12.00 & \$ 7.60\end{array}$$ In the first year,variable costs accounted for half of the full costs.Total fixed production costs increased each subsequent year by 20%,as a result of step-fixed costs and a general inflationary price increase.
For Chamiching,which of the following is true?

• A)Variable costing income (VCI)exceeds full costing income (FCI)every year
• B)VCI exceeds FCI in Yrs 1 and 2 only
• C)VCI exceeds FCI in Yrs 2 and 3 only
• D)VCI never exceeds FCI
• E)None of the choices are correct

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Definitions:

Middle Childhood

A stage of development that generally includes children from about 6 to 12 years old, characterized by the development of logical thinking, independence, and increasing social interactions.

Critical Self-appraisal

The process of rigorously examining, questioning, and evaluating one's own thoughts, feelings, and behaviors.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs such as "I am competent" or "I am worthy."

Decline in Egocentrism

A developmental process where individuals gradually become more aware of other perspectives and viewpoints aside from their own.