Use the Following Information for Questions

question 85

Multiple Choice

Use the following information for questions.
Niles Co.has the following data related to an item of inventory:
-The value assigned to cost of goods sold if Niles uses FIFO is

• A)$579.
• B)$552.
• C)$1,723.
• D)$1,696.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, such as factory rent, utilities, and maintenance.

Flexible Budget

A customizable budget that adjusts based on operational volume or activity fluctuations.

Activity Level

A factor that measures the amount of production or work accomplished, often used in cost accounting to determine costs based on different levels of operation.

Activity Variance

A metric used in cost accounting to measure the difference between planned activity and actual activity, often analyzed to improve budgeting and control processes.