A Company That Produces a Single Product Had a Net

question 15

Multiple Choice

A company that produces a single product had a net operating income of $65,000 using variable costing and a net operating income of $95,000 using absorption costing. Total fixed manufacturing overhead was $60,000 and production was 10,000 units. This year was the first year of operations. Between the beginning and the end of the year, the inventory level:

• A) decreased by 5,000 units
• B) increased by 5,000 units
• C) decreased by 30,000 units
• D) increased by 30,000 units

---

Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the Great Depression.

Predecessor

An individual or entity that held a position or office before the current holder.

Election

A formal group decision-making process by which a population chooses an individual or multiple individuals to hold public office.

Critics

Individuals who evaluate or analyze the merits and faults of artistic, literary, or political works.