Use the Following Information for the Next 4 Questions

question 22

Multiple Choice

Use the following information for the next 4 questions.
Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below:
-The operating income for year 2 using absorption costing would be

• A) $(9,800)
• B) $600
• C) $(9,000)
• D) $6,000

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Definitions:

Nonparametric Test

A type of statistical test that does not assume a specific distribution for the data and is used for data that does not meet the assumptions of parametric tests.

Chi-square

A statistical test used to determine if a significant relationship exists between two categorical variables.

Specified Population

A clearly defined group of individuals, items, or events that are the subject of a statistical study or research.

Kolmogorov-Smirnov

A nonparametric test used to determine if two sample distributions differ significantly.