The Gross Margin That the Company Would Disclose on an Absorption-Costing

question 36

Multiple Choice

The gross margin that the company would disclose on an absorption-costing income statement is:

• A)$0.
• B)$133,000.
• C)$166,500.
• D)$342,000.
• E)some other amount.
• Original answer is wrong ($120,000).Should be $133,000.

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Definitions:

Blastocyst

An early stage in the embryonic development of mammals, consisting of a sphere made up of an outer layer of cells and a fluid-filled cavity.

Placenta

The placenta is an organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.

Teratogens

Agents, such as chemicals or viruses, that can reach the embryo or fetus during prenatal development and cause harm.

Diethylstilbestrol

A synthetic estrogen that was prescribed to pregnant women to prevent miscarriages and premature labor, later found to cause significant health issues.