Mccaskell Corporation's Relevant Range of Activity Is 7,000 Units to 11,000

question 243

Multiple Choice

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

• A) $79,600
• B) $93,600
• C) $87,600
• D) $172,800

---

Definitions:

Assets

Resources owned by a company that have economic value and can be used to meet liabilities.

Internal Auditors

Professionals who conduct audits within an organization to review and evaluate the adequacy of internal controls and compliance with policies and regulations.

Evaluate

To Evaluate means to systematically assess something by considering its merits, qualities, or values, usually in a detailed and analytical manner.

Internal Controls

Steps and guidelines set by a business to secure the trustworthiness of its financial and accounting information, promote ethical accountability, and inhibit fraud.