The Following Data Relate to Swift Company for the Year

question 74

Multiple Choice

The following data relate to Swift Company for the year ended December 31,2012.Swift Company uses the accrual basis. $\begin{array}{llcc} \text {Sales on credit } &\$250,000 \\ \text {Cost of inventory sold on credit } &170,000\\ \text { Collections from customers } &220,000\\ \text { Purchase of inventory on credit } &150,000\\ \text { Payment for purchases } &140,000\\ \text { Selling expenses (accrual basis) } &40,000\\ \text { Payment for selling expenses } &45,0000\end{array}$

Which of the following amounts represents income for Swift Company for the year ended December 31,2012?

• A)$60,000
• B)$50,000
• C)$40,000
• D)$35,000
• E)$30,000

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Definitions:

Personal Selling

A sales approach where individuals promote products or services through direct communication with potential buyers.

Customer Output-Unit-Level Costs

The costs associated with producing a single unit of product or service that is directly attributed to fulfilling customer demands.

Customer Lifetime Value Costs

Represents the total amount of money a business expects to spend on a customer throughout their entire relationship.

Customer Batch-Level Costs

Expenses associated with processing groups of items or orders rather than individual units, affecting pricing and profitability.