Bellue Incorporated Manufactures a Single Product

question 58

Multiple Choice

Bellue Incorporated manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,600 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

• A) $2,600
• B) $93,700
• C) $96,300
• D) $98,900

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Definitions:

Preoperational Thought

Refers to a stage in Jean Piaget's theory of cognitive development where children from 2 to 7 years old are able to engage in symbolic play but have not yet understood the concept of logical operations.

Language Learning

The process by which individuals acquire the ability to perceive, comprehend, and produce verbal and non-verbal forms of communication.

Phonology

The sound system of a language; includes rules for arranging the basic sounds or “phonemes” of the language.

Semantics

An aspect of a language that children must learn, including the words and word parts that express meanings in that language, also called the meaning system of a language.