A Company Reported the Following Results of Its Operations for 2006

question 55

Multiple Choice

A company reported the following results of its operations for 2006: Income from continuing operations was:

• A)$32,600
• B)$27,200
• C)$41,600
• D)$38,000

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Definitions:

Lean Accounting

An accounting practice that supports lean enterprise philosophies, focusing on value streams and reducing waste in financial processes.

Indirect Labor

Any labor needed to make a product that is not directly traced to the product.

Product Cells

Small, autonomous manufacturing units within a facility focused on producing a specific family of products or components.

Predetermined Factory Overhead Rate

The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the estimated total factory overhead costs by the estimated activity base at the beginning of the fiscal period.