Atlas Manufacturing Is Closing the Year 2012

question 133

Multiple Choice

Atlas Manufacturing is closing the year 2012. Atlas uses standard costing methodology in its accounting system and for internal performance reporting. Atlas's ending balances are shown here: Using the standard costing system, how much is Net operating income?

• A) $8,780
• B) $6,290
• C) $7,100
• D) $7,530

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Definitions:

Disaffirm

The legal act of rejecting or voiding a contract or agreement, especially by a party who was not at full capacity when the agreement was made.

Property

Refers to legally recognized ownership of resources such as land, buildings, goods, or intellectual property.

Understand

The ability to grasp the meaning, significance, or nature of something.

Avoid

To stay away from or prevent the occurrence of a situation or condition.