In the Month Just Ended, Aldebraun Industries Produced 40,000 Units

question 40

Multiple Choice

In the month just ended, Aldebraun Industries produced 40,000 units and sold 37,000 units. There were 2,000 units in finished goods inventory at the start of the month. Manufacturing costs are stable from month to month. The fixed overhead rate was £8 per unit. Aldebraun uses absorption costing. If Aldebraun used variable costing, the difference in net income would have been

• A)£24,000.
• B)£16,000.
• C)£40,000.
• D)£8,000.

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Definitions:

Self-congratulation

The act of praising or expressing pride in oneself for one's achievements or qualities, often without external acknowledgment.

Difficult Assignment

A task or project that is particularly challenging due to its complexity, scope, or the required skill set.

Punishment

A consequence or penalty imposed for unacceptable behavior, meant to discourage that behavior in the future.

Turnover

The rate at which employees leave a company and are replaced by new ones.