The Management of Bonga Corporation Is Considering Dropping Product D74F

question 36

Multiple Choice

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $198,000 of the fixed manufacturing expenses and $109,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued.According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation-whether relevant or not.

• A) $48,000
• B) ($521,000)
• C) ($48,000)
• D) $521,000

Comprehend the importance of sampling methods and their impact on survey accuracy.

Learn the process of organizing information in reports using various methods.

Understand the significance of referencing borrowed information and the differences between quoting, paraphrasing, and summarizing.

Grasp the basics of performing effective database searches.

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Definitions:

Business Combination

The process of merging two or more companies into one entity, which includes acquisitions and consolidations.

Pooling of Interest Method

An accounting method used in mergers and acquisitions, where the combined assets and liabilities of the merging entities are recorded at their historical costs.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Business Combinations

Transactions in which one entity gains control over another and they are combined into one entity, often involving mergers, acquisitions, or consolidations.