Home Products Inc Has Failed to Reach Its Planned Activity

question 36

Multiple Choice

Home Products Inc has failed to reach its planned activity level during its first two years of operation. The following table shows the relationship between units produced, sales, and normal activity for these years and the projected relationship for Year 3. All prices and costs have remained the same for the last two years and are expected to do so in Year 3. Income has been positive in both Year 1 and Year 2. Because Home Products uses a full costing system, one would predict operating income for Year 3 to be:

• A)Greater than operating income under variable costing.
• B)Less than year 2
• C)The same as operating income under variable costing.
• D)Less than the operating income under variable costing.

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Definitions:

WISC

The Wechsler Intelligence Scale for Children is a widely used intelligence test for children between the ages of 6 and 16.

Cognitive Development

The process of growth and change in intellectual capabilities, influencing how one perceives, thinks, and understands the world.

Biological Factors

Elements that are related to the biological makeup of an individual, including genetics, neurochemistry, and physical health, which can influence behavior and mental health.

Information-Processing Abilities

Cognitive functions related to how an individual perceives, analyzes, manipulates, uses, and remembers information.