Truo Corporation Produces a Single Product

question 224

Multiple Choice

Truo Corporation produces a single product. Last year, the company had net operating income of $100,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was $4 per unit both last year and this year, what would have been the net operating income using absorption costing?

• A) $80,000
• B) $100,000
• C) $120,000
• D) $172,000

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Definitions:

Landscape Painting

Artistic depictions focused on natural scenery such as mountains, valleys, trees, rivers, and forests, often with an emphasis on the beauty of the natural world.

Daoist Emphasis

The focus or importance placed on Daoist principles, such as harmony with nature, in various aspects of culture, philosophy, and religion.

Harmony With Nature

A principle or philosophy that emphasizes living in balance with the natural world, respecting and preserving ecosystems.

Daoist Sensitivity

An appreciation or responsiveness towards the principles of Daoism, including harmony with nature, simplicity, and the pursuit of spiritual understanding.