Dallas Corp

question 7

Multiple Choice

Dallas Corp.reported the following information for 2015 and 2016. How much cash was received for interest during 2016?

• A)$2,900
• B)$3,200
• C)$3,500
• D)$3,800

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Definitions:

Fixed Overhead

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.

Direct Labour

The workforce directly involved in the manufacturing or production process.

Net Operating Income

Net operating income is the total profit of a business after subtracting operating expenses but before deducting taxes and interest charges.

Target Costing

A pricing method that involves reversing the traditional cost-plus formula to determine allowable costs based on market price and desired profit.