Aaron Corporation, Which Has Only One Product, Has Provided the Following

question 256

Multiple Choice

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

-What is the net operating income for the month under absorption costing?

• A) $6,400
• B) $12,000
• C) $5,600
• D) $(20,400)

---

Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and the owner.

Closely Held Corporation

A type of company that is owned by a small group of people who are usually closely associated with the business.

Publicly Trades

Pertains to companies whose shares are bought and sold on stock exchanges, allowing investors to purchase ownership interests in the businesses.

Auction Market

A market where buyers and sellers enter competitive bids simultaneously; the price is determined by the highest bid received by the seller.