The Assembly Department Started the Month with 24,000 Units in Its

question 252

Multiple Choice

The Assembly Department started the month with 24,000 units in its beginning work in process inventory. An additional 309,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

• A) 333,000
• B) 362,000
• C) 304,000
• D) 314,000

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Definitions:

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Breakeven Point

is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Business Risk

Variation in a company’s financial performance caused by changes in business conditions.