During the Year Just Ended,Roberts Company's Operating Income Under Absorption

question 54

Multiple Choice

During the year just ended,Roberts Company's operating income under absorption costing was $3,000 lower than its operating income under variable costing.The company sold 9,000 units during the year,and its variable costs were $9 per unit,of which $3 was variable selling expense.If production cost is $11 per unit under absorption costing every year,how many units did the company produce during the year?

• A) 8,000 units.
• B) 8,400 units.
• C) 9,600 units.
• D) 10,000 units.

Identify and evaluate the effects of cash discounts on purchasing and payment behavior.

Recognize the factors influencing credit terms and their impact on buyer and seller cash flows.

Distinguish between the different costs associated with carrying credit and managing inventories.

Analyze the impact of changing credit terms on the cash cycle of customers.

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Definitions:

Domestic Petroleum

Petroleum products that are produced, processed, and consumed within a country's borders.

Bioplastics

A type of biodegradable plastic derived from biological substances rather than petroleum, often used as an environmentally friendly alternative to traditional plastics.

Source Materials

Raw materials or substances used in the manufacturing or production process to create a final product.

Bioplastics

A type of plastic derived from renewable biomass sources, such as vegetable fats and oils, corn starch, or microbiota, as opposed to fossil-fuel plastics.