Highline Company Reported the Following Costs for the Year Just

question 67

Multiple Choice

Highline Company reported the following costs for the year just ended: $\begin{array} { | l | r | } \hline \text { Throughput manufacturing costs } & \$ 180,000 \\\hline \text { Non-throughput manufacturing costs } & 600,000 \\\hline \text { Selling and administrative costs } & 125,000 \\\hline\end{array}$ If Highline uses throughput costing and had sales revenues for the period of $950,000, which of the following choices correctly depicts the company's cost of goods sold and net income? $\begin{array} { | l | c | c | c | } \hline & \text { Cost of Goods Sold } & & \text { Net Income } \\\hline 1 & \$ 180,000 & & \$ 45,000 \\\hline 2 & \$ 180,000 & & \$ 645,000 \\\hline 3 & \$ 305,000 & & \$ 45,000 \\\hline 4 & \$ 305,000 & & \$ 645,000 \\\hline 5 & \$ 305,000 & & \$ 305,000 \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Performance Measurement

The systematic process of tracking outcomes and results obtained from the activities and operations of programs or employees, often used to gauge progress towards objectives.

Behaviorally Anchored Rating Scale

A method used for appraising an employee's performance, featuring specific examples of behavior anchored to numerical ratings.

Behavioral Observation Scale

A method used in performance appraisal that involves rating the frequency of observed behavior.

Rating Scale

A method for assigning a value to a person's performance or characteristics, often in the form of a numbered or descriptive scale.