Use the Bar Chart to Answer the Question

question 121

Multiple Choice

Use the bar chart to answer the question.
-In what year was Nike revenue approximately $16000 million? Nike Income in millions of US $

• A) 2007
• B) 2008
• C) 2009

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Definitions:

Variable Costing

A costing method that only includes variable costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, while fixed costs are expensed in the period they are incurred.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of a unit of product.

Manufacturing Overhead

All indirect costs related to manufacturing, excluding direct materials and direct labor, such as factory rent, utilities, and equipment depreciation.

Absorption Costing

A method for determining the cost of a product by including all manufacturing expenses, like material costs, labor fees, and both changeable and stationary overheads.