What Is Ling's 2013 Net Income Using Cash Basis Accounting

question 24

Multiple Choice

What is Ling's 2013 net income using cash basis accounting?

• A) ¥23,500.
• B) ¥5,500.
• C) ¥22,500.
• D) ¥4,500.

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Definitions:

Incremental Overhead Costs

Additional overhead expenses directly resulting from a specific business decision or activity.

Relevant Costs

Costs that should be considered when making decisions because they will be affected by the decision.

Markup Percentage

The percentage difference between the cost of a good or service and its selling price, indicating the gross profit margin.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.