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

question 215

Multiple Choice

Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the net operating income for the month under absorption costing?

• A) $7,000
• B) $4,600
• C) $11,600
• D) $24,200

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Definitions:

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.

Productivity

The measure of the effectiveness of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Quantitative Measure

An evaluation tool that uses numerical data to assess performance or outcomes.

Efficiency

The ability to accomplish a task or produce a desired outcome with the least amount of waste, effort, or resources.