Onini,Incproduces One Product with Two Production Levels: 20,000 Units and 80,000

question 9

Multiple Choice

Onini,Inc.produces one product with two production levels: 20,000 units and 80,000 units.At each production level,Onini's per-unit costs for Costs A,B,and C are: What type of cost is each?

• A)Cost A is fixed,Cost B is mixed,and Cost C is variable.
• B)Cost A is fixed,Cost B is variable,and Cost C is mixed.
• C)Cost A is variable,Cost B is mixed,and Cost C is fixed.
• D)Cost A is variable,Cost B is fixed,and Cost C is mixed.

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Definitions:

Adjusting Entries

journal entries made in an accounting system to update accounts for transactions that have not yet been recorded by the end of a period.

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Shareholder's Equity, underpinning the double-entry bookkeeping system.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent ones, thereby resetting the temporary accounts for the next period.

Permanent Accounts

The balance sheet accounts whose balances are carried over into future accounting periods, not closed at the end of the fiscal year.